Sichuan Authorities Dismantle Illegal Cross-Border Crypto Operations – Coincu

Fan, He, Chen, and associates have been apprehended in Chengdu for operating an illegal cross-border foreign exchange business since August 2021. Authorities reported the case concluded in December 2024, targeting exchanges involving cryptocurrencies and gift cards.

The case demonstrates the ongoing regulatory challenge posed by illegal cross-border crypto operations in China and underscores the increased scrutiny on such activities.

21 Arrests in 3.9 Billion Yuan Cross-Border Case

Since August 2021, suspects orchestrated illegal cross-border currency exchanges in Chengdu, involving cryptocurrencies and gift cards. This operation affected transactions over 3.9 billion yuan and resulted in 21 arrests by Sichuan Public Security.

Increased regulatory scrutiny is anticipated for OTC and P2P exchanges following this high-profile bust. China continues to combat illegal capital flight, impacting operations associated with overseas forex institutions.

Currently, there are no publicly available quotes from relevant individuals, organizations, or official channels regarding the Sichuan “2・6” Illegal Cross-Border Forex & Crypto Case, as mentioned in your overview. The report notes the absence of public statements, tweets, or blogs from primary sources, including major crypto thought leaders or regulatory bodies.

Regulatory Scrutiny and Market Implications

Did you know? In past years, China has significantly stepped up its regulatory measures against illegal cross-border payments, often involving cryptocurrencies, reinforcing its focus on heightened scrutiny and control.

Data from CoinMarketCap: Bitcoin (BTC) is priced at $102,976.57 with a market cap of $2.05 trillion and a trading volume of $38.60 billion. BTC’s price decreased by 1.18% over 24 hours, with a notable rise of 21.57% in the past 30 days.

According to the Coincu research team, increases in cross-border crypto regulations could drive innovation in compliance technologies. Potential origins of enhanced fintech may arise in blockchain stability and identification verification enhancements.