- Reports reveal that the bad actors are still using cryptocurrencies for “illegal activities” even after the crackdown in China.
- Zhongke Lianan, as reported by a Chinese blockchain data tracker, China’s legal system published 5,170 judgments, a noticeable spike in comparison to 3,474 judgments in 2019.
- Among 744 cases, USDT on Tron was used in 47.54% of all these cases.USDT on Ethereum was in 30.96% of the cases and USDT on the Bitcoin Network was used in 10.34%.
On September 24 last year, China’s most powerful regulators issued a blanket ban on all transactions and mining processes related to cryptocurrencies.
It was for the first time that Beijing-based ten agencies including the central bank, financial, securities, and foreign exchange regulators came together to stop all “illegal” cryptocurrency activity.
China was among the world’s largest cryptocurrency markets. Any fluctuations in China’s crypto market had a global impact. Bitcoin’s price fell by over $2,000 following the announcement.
Now, according to recent reports, the total number of legal judgments involving crypto-related criminal activities in China dropped slightly to 5,137 cases in 2021 even as the countrywide crackdown continues.
Illegal Activities Continues Amid Crypto Ban
As reported by a Chinese blockchain data tracker Zhongke Lianan, in 2020, China’s legal system released 5,170 judgments. It was a notable surge as compared to 3,474 judgments in 2019.
As reported in December last year, due to the nationwide ban on cryptocurrency by the Chinese regime, there was a mass exodus of Chinese miners to crypto-friendly jurisdictions such as North America and Central Asia.
While many Chinese Miners moved to different states as soon as the announcement came, some less-resourced miners had to stay.
The reasons included pandemic travel restrictions, supply chain issues, and the scarcity of overseas contracts and money. However, they continued the mining operations even after the clampdown.
They cracked out various mining activities such as manipulating IP addresses, leveraging hydro-power dams, and grid electricity to sustain in tough environments.
A blockchain data tracker Chinese firm, Zhongke Lianan, said it assisted in the investigation of 744 cases last year.
Pyramid Schemes included around 48.52% of all judgments, while 11.96% were regarding online gambling and 27.82% were fraud-related.
In 47.54% of the 744 cases, USDT on Tron was used, followed by USDT on Ethereum in 30.96% of the cases, and in 10.34% USDT on the Bitcoin Network was used.
Is The Decision To Ban CryptoCurrency Was Right?
The ban on Bitcoin and Cryptocurrencies is indeed bad news for the countrymen as it now is void of last hopes. However, individuals knowing of Bitcoin will still search for ways to leverage the network in one way or another.
On the other hand, some Cryptocurrencies enthusiasts hope that China’s crackdown will further push crypto investors onto so-called Defi platforms, blockchain-based organizations that render several services that are not monitored by any single party or company.
The reasons behind the lockdown given by Chinese government authorities were collinear, however, the decision seems to be failing.
According to recent reports, there are still crypto-related crimes such as illegal use of crypto assets still going on.
The majority of the reports state that the actual reason behind China’s ban on Crypto was to make the launch of Chinese CBDC successful.