Chinese Crypto Crime Is Falling But Still Remains Top-Ranked: Report

Chinese Crypto Crime Is Falling But Still Remains Top-Ranked: Report


The Chinese crypto crime is slowly falling but the country still remains top-ranked in regards to crypto-related crimes as we are reading more in our latest crypto news today.

The Chinese wallets sent and received more than $2 billion worth of crypto associated with illicit activities between April 2019 and June 2021. the reports from Chainalysis found that China’s share of the global criminal crypto flow has been dropping since the third quarter of 2019 and the country still represents a disproportionate amount of money laundering and scams. Chainalsysis stated that more than $2.2 billion worth of crypto has been sent from the Chinese wallets to addresses associated with illicit activity between April 2019 and June 2021. The addresses received more than $2 billion worth of assets and were tied to nefarious activity like scams and darknet marketplaces:

“China’s transaction volume with illicit addresses has fallen drastically over the time period studied, both in terms of raw value and in relation to other countries. Much of the drop is due to the absence of large-scale Ponzi schemes like the 2019 PlusToken scam.”

Source Chainalysis

Chainalyis added:

“While China remains one of the top-ranked countries for illicit transaction volume, it used to beat all others by a wide margin, suggesting that cryptocurrency-related crime in the country has fallen.”

The report’s authors cited the historical transaction data as suggesting that Chinese OTC BTC brokers played a huge role in facilitating money laundering for the ones involved in crypto-based crimes. The report added that the vast majority of the illicit Chinese crypto flows were associated with scam activity but digital assets-based laundering is still carried out in China. Chainalysis noted that the central government conducted more than $1000 arrested associated with digital asset-based money laundering in June which shows a desire o crackdown on the sector:

“It will be interesting to see whether the arrests lead to a drop in flows of illicit funds to China-based cryptocurrency businesses and OTC traders.”

Chainalaysis speculates that china’s moves to clamp down on traditional decentralized cryptos can undermine the nation’s status as a global crypto superpower. The report attributed china’s renewed hostility towards decentralized assets to its plans for widespread adoption of the yuan.

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