China has recently arrested 1100 people who were using the profits from crime to buy cryptocurrencies. Security officials say that this has happened due to the growing crackdown on the industry. Although bitcoin trading is banned in China, the country’s bitcoin mines run around 80% of the global trade in cryptocurrencies.
In order to put an end to money laundering and to prevent its speculations, officials are strictly monitoring cryptocurrency miners. The launderers who were busted by the Chinese police were charged of converting money earned through illegal methods into virtual currencies via crypto exchanges.
China had banned cryptocurrency trading in 2019 and increasingly introducing tighter regulations regarding bitcoin mining. The month of Aril saw the northern region of Inner Mongolia close down all its cryptocurrency mines because they were unable to achieve the annual energy consumption targets.
The region had eight per cent of the computing power required to run the global blockchain. It also had a set of online ledgers which could record bitcoin transactions. Even the entire US does not have this amount of computing power dedicated to blockchain.
Recently, a similar ban was also announced by the northwestern province of Qinghai.