Chinese Authorities Crack Down On Underground Crypto Exchange Network
The Chinese State Administration of Foreign Exchange (SAFE) has taken action against an underground bank utilizing cryptocurrency to provide illicit exchange services.
The crackdown targeted a network with over 1,000 bank accounts operating in 17 provinces, responsible for moving more than 15.8 billion yuan ($2.2 billion) to purchase crypto on overseas exchanges and offer yuan exchange services. Qingdao police traced the accounts linked to a Chinese national named Jin, facilitating the exchange business. The operation encompassed more than 20 million transactions, and Li, a textile worker acting as a broker for virtual currency transactions, linked the accounts.
The report emphasized the illegality of managing and exchanging cryptocurrencies in China. SAFE authorities underscored the importance of conducting legal exchanges and warned against participating in such illegal trades, reinforcing their commitment to cracking down on unlawful exchange activities. Huang Hui, Deputy Director of SAFE’s Management and Inspection Department, highlighted ongoing collaboration with other state institutions to combat illegal exchange businesses and promote the use of legal channels.
Clever Robot News Desk 27th December 2023
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