Authorities In China Take Action Against 380 Cryptocurrency Fraud Groups

The data records of the country’s anti-fraud center pointed out and enacted against up to 380 illegitimate groups that were suspected to be involved in criminal activities like money laundering of virtual currency and running false promotions in the initial half of 2021.

Zhang Shuo, an officer from the anti-fraud center, stated that wire scams had turned into a rapidly spreading crime. Between January and May, nearly 114,000 cases were investigated across the country, and up to 14,000 illegal gangs were exposed to punishment. Beijing Business Today reported that the significantly important focus of the authorities is currently the frauds regarding cryptocurrencies and the other scams which are done utilizing the high-end technologies.

Crypto Scam report, published by Bolster (a fraud prevention firm), disclosed that the fraud in the field of cryptocurrency is swiftly increasing across the globe. It brought to the front that nearly 400,000 scams concerning cryptocurrency were globally indicated worldwide during 2020, a number which spiked 40% above their position in 2019. In some recent years, China has seen an upsurge in crypto scams. Formerly, there was a limitation for such scams containing them restricted to the community of cryptocurrency. However, in China, blockchain technology and the internet’s pervasiveness have opened a wide way for these scams to influence the daily lives of numerous people.

The quantity of cyber-crime cases moved above the number of offline frauds during the previous years, as told by a police officer from the public security department of Zhenjiang province. He spoke remarks at the World Blockchain Conference (a prominent event related to blockchain in China) that was held last week in Hangzhou (China’s southeastern city).

Xinhua (a news agency) stated that the widespread project of the central bank of China for testing CBDC became the intriguing factor for the fraudsters, and they gained benefit out of the community’s familiarity with the digital yuan to make money by selling their illegal crypto programs. As it has been crystal clear that the technology of blockchain is considered to be of core importance for backing China’s forthcoming movement regarding digital transformation, several sectors have embraced it for updating their services, and these departments are being innocently victimized by hackers.

A lot of strict regulations have been imposed by China to clamp down on crypto mining as well as crypto trading. At the start of July, the People’s Bank of China warned the institutions under the jurisdiction of the bank not to offer information or marketing services regarding crypto.

Author: Isacco Genovesi

Isacco writes news articles, reviews and guides about cryptocurrencies including technical analysis, blockchain events, coin prices marketcap and detailed reviews on crypto exchanges and trading platforms.

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