{"id":26260,"date":"2023-06-22T21:51:38","date_gmt":"2023-06-23T01:51:38","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/china-warns-citizens-not-to-aid-crypto-traders\/"},"modified":"2023-06-22T21:51:39","modified_gmt":"2023-06-23T01:51:39","slug":"china-warns-citizens-not-to-aid-crypto-traders","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=26260","title":{"rendered":"China Warns Citizens Not to \u2018Aid\u2019 Crypto Traders"},"content":{"rendered":"
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A Chinese ministry has warned citizens of the severe consequences of \u201cfacilitating\u201d crypto transactions on behalf of other people.<\/p>\n

The nation has exacted two sweeping crackdowns on crypto, one in 2017, and the other in 2021.<\/p>\n

The first crackdown mainly targeted crypto exchanges, forcing most brokers and trading platforms away from the Mainland.<\/p>\n

The second crackdown forced banks to shut down crypto-related transactions and outlawed crypto mining.<\/p>\n

Regardless, many Chinese traders remain crypto-keen.<\/p>\n

And Cryptonews.com<\/i> has seen evidence of a thriving Chinese over-the-counter trade in coins in 2023, with USDT and Bitcoin trades seemingly the most popular.<\/p>\n

21st Century Business Herald (via Stockstar) reported that there has been a rise in social media posts uploaded by people attempting to recruit third-party crypto transfer \u201caccomplices.\u201d<\/p>\n

One such post read as follows:<\/p>\n

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\u201cHelp people transfer and remit money to earn thousands of dollars a day. It\u2019s easy!\u201d<\/p>\n<\/blockquote>\n

These \u201crecruiters\u201d say that they are posting lucrative \u201cside jobs.\u201d<\/p>\n

But the Ministry of Public Security warned that individuals who take part in these \u201cschemes\u201d are \u201cvery likely to commit the crime of assisting IT network fraud.\u201d<\/p>\n

The ministry, as well as legal and IT researchers, warned that \u201cfixed-term\u201d jail sentences and fines await those convicted of such crimes.<\/p>\n

Why Do Some Chinese Citizens Want to \u2018Facilitate\u2019 Crypto Trades?<\/h2>\n

The media outlet gave the example of an individual surnamed Geng who reportedly processed almost $1 million worth of crypto-related transactions through his personal bank accounts.<\/p>\n

Geng, police said, received a \u201cfavor fee\u201d of up to around $418 for each transaction.<\/p>\n

But Geng and his associates have since been charged with a range of crimes, the media outlet noted.<\/p>\n

China\u2019s updated criminal code details that \u201chelping others to use information networks to commit crimes, and providing Internet access, hosting servers, providing network storage, and providing communication services\u201d are punishable.\u00a0<\/p>\n

The code can be applied to those facilitating crypto trading on behalf of others, experts warned.<\/p>\n

If courts judge that the crimes are \u201cserious,\u201d perpetrators can be fined and jailed for up to three years.<\/p>\n

Two other individuals, both surnamed Li, were sentenced to six to eight months in jail for using their own bank accounts to help others buy crypto.<\/p>\n

The ministry and associated researchers claimed that \u201cthe most common form of cryptoasset-related crime\u201d in 2022 was money laundering, which accounted for 55% of the year\u2019s total.<\/p>\n

A further 21% cases were related to fraud, while gambling and pyramid schemes both accounted for a smaller number.<\/p>\n

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Last month, a group of stablecoin operators was detained by police in Shanghai.<\/p>\n<\/p><\/div>\n