Thousands Arrested in Government Crackdown

At a time when the UN is discussing possibilities to counter the threat of crypto money laundering, a work report, presented by Ying Yong, the Procurator-General of the Supreme People’s Procuratorate, at the Third Session of the 14th National People’s Congress, reveals that nearly 3,032 people were prosecuted for crypto money laundering crimes in 2024. Let’s dive in to learn the details! 

China’s Crackdown on Crypto Money Laundering 

As per Yong’s work report, no fewer than 3,032 people were booked in connection with crypto money laundering crimes in 2024. 

How does crypto money laundering work? 

Criminals hide dirty money by turning it into anonymous cryptos. They mix these cryptos with others, making them impossible to trace. Then, they swiftly move the money through many crypto addresses. Finally, they cash it out, pretending it came from legal crypto trading or investments or use it to purchase high-value products.

China’s Action against Financial Fraud and Crimes 

The same report states that around 25,000 people were arrested in China for financial fraud and crimes in 2024. This showcases that the Chinese government is keen to weed out the threat of financial fraud and crimes from its financial ecosystem.

The report also notes that in the same year, no fewer than 825 people were prosecuted for securities crimes, such as financial fraud and insider trading. 

It also adds that around 42 people in the Evergrande Group case and 49 people in the Zhongzhi Group case were booked in the same year. Reports say that the China Securities Regulatory Commission is working with the procuratorate to clean up the private equity sector. 

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Chinese Crypto Regulation Landscape: An Overview 

China’s approach to cryptos is characterised by prohibitions rather than regulation. There is not a single crypto regulator in the country; instead, several Chinese government entities enforce the country’s crypto restrictions. 

The People’s Bank of China is a primary force behind China’s cryptocurrency crackdown. Various other agencies, including those responsible for financial stability, cybersecurity, and law enforcement, also contribute to the enforcement of cryptocurrency restrictions. 

In conclusion, China’s strict legal action against financial crimes shows its commitment to controlling illegal crypto transactions and financial fraud. With thousands prosecuted, the government’s stance against crypto money laundering is clear.