Reports have emerged indicating that Chinese authorities are closely monitoring cryptocurrency activities and implementing innovative strategies to combat virtual currency money laundering.
“An Important Breakthrough”
According to the Chinese state-owned broadcaster, CCTV (controlled by the CCP), the country’s Ministry of Public Security has solved 259 cases that involve cryptocurrency money laundering. It also seized cryptocurrencies worth 11 billion yuan, or nearly $1.7 billion, and called the latest development – an important breakthrough.
China has been cautious about new technologies, but has made its anti-crypto stance clear. Often touted as one of the most intense crackdowns, policymakers first banned financial institutions from engaging in crypto transactions in May 2021.
The next target was domestic crypto mining, which escalated last June. Three months later, it completely outlawed cryptocurrencies. The government of the world’s second-largest economy outlined crypto mining’s environmental impact as well as digital currency usage for fraud and money laundering. More than anything else, China is keen on pushing the digitized version of its yuan currency.
Obsolete Crypto Mining in China
As part of its efforts to help achieve state-of-the-art carbon and carbon neutrality targets, China’s National Development and Reform Commission recently concluded that cryptocurrency mining is “obsolete” in the country.
Obsolete, here, refers to existing initiatives that are prohibited from seeking investment and will be phased out, which applies not only to domestic but also foreign enterprises in China.
However, the document released by the state agency did not reveal when the mining activities will be completely wiped out.
Moving Away From Crypto
China may have banned cryptocurrencies but is keen on expanding blockchain capabilities, NFTs, and Metaverse.
The latest to board the NFT bandwagon was Blockchain Services Network (BSN), a Chinese state-backed blockchain company. He revealed plans to launch an infrastructure allowing users and businesses across the country to make, sell and buy NFTs.
