Recent Chinese police operations have shown that some Chinese citizens still engage in trading digital currencies, even after Beijing banned crypto trading. These raids, intended to tackle illegal foreign exchange dealings, provide a glimpse into the realities of implementing the ban.
Some cases highlighted in May include an underground bank accused of facilitating about 13.8 billion yuan ($1.9 billion) in fraudulent money transfers and a gang involved in fraudulently converting approximately 2 billion yuan.
According to Bloomberg’s report, the ban itself was driven by factors such as money laundering, capital flight, and concerns about the environmental impact of Bitcoin mining. However, Chinese citizens continue to engage in digital assets in search of investment opportunities.
Chengyi Ong, APAC policy head at Chainalysis Inc., stated that “A significant amount of crypto activity remains in China, and it may be in part because the ban is porous or loosely enforced, but is also attributable to the decentralized and often peer-to-peer nature of crypto activity.”
However, the trading of digital assets has not been fully eradicated from the Hong Kong market since the authorities have just put a ban on the which has some restrictions on mainland Chinese people from making easy investments in the region.
Also Read: Coinbase and SEC Clash Over Investment Contract Definition
