China isn’t done nixing crypto activities as a law enforcement agency has reportedly intensified crackdown on illegal cryptocurrency payments.
Reports emerged indicating that the Chinese officials are keeping a close eye on cryptocurrency activities and are applying innovative strategies to tackle 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 of new technologies but has made its anti-crypto stance very clear. Often touted as one of the most intense crackdowns, the policymakers first banned financial establishments from engaging in any 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.
Crypto Mining Obsolete in China
As part of its efforts to assist in reaching peak carbon and carbon neutrality targets, China’s National Development and Reform Commission recently concluded that crypto 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 published by the state agency did not reveal when mining activities will be wiped out completely.
Moving Away From Crypto
China may have banned cryptocurrencies but is keen on expanding blockchain capabilities, NFTs, and Metaverse.
The latest to hop on to the NFT bandwagon was Blockchain Services Network (BSN), a Chinese state-backed blockchain company. It revealed plans to launch infrastructure enabling users and businesses in the country to make, sell, and purchase NFTs.