The Chinese authorities have uncovered two underground illicit operations in Fujian and Hunan. Notably, the police froze 149 million yuan worth $20 million which was linked to USDT banking operations.
This underground syndicate relied on stablecoin Tether for its operations. Notably, tether was used for the exchange of other foreign currencies.
According to a police report, 193 suspects had been arrested in connection to the case across 26 provinces in China.
Police Report Uncovers Illegal Cash Operations With USDT
According to the police report, the illegal USDT banking operations kicked off in January 2021. These funds were used to smuggle medicine, investment assets, and cosmetics overseas.
Impressively, the Chinese authorities destroyed two of these illegal cash structures and froze $20 million worth of assets linked to the operation.
Interestingly, despite a tight pan on crypto operations in China, Chinese traders have found a way to bypass the restrictions.
Also, a report reveals that Chinese traders rank among the top stablecoin holders in the world. According to the report, 33.3%of Chinese investors hold different stablecoins.
This makes them come behind only Vietnam in the region with 58.6% of people holding stablecoins.
Notably, the Chinese government still maintains its ban on the use of cryptocurrency and crypto exchanges. Also. Bitcoin mining operations are illegal in the region.
However, the local population continues to find a way to participate in crypto despite the risks involved.
Before the Bitcoin mining ban, China was the largest contributor to the Bitcoin network hash rate.
Surprisingly, China’s hash rate is in second place despite the ban showing the resilience of crypto enthusiasts.
So, Chinese traders rely heavily on decentralized finance protocols and some rely on virtual private networks (VPN).
Crypto Lovers in China Continue to Thrive Despite Hostile Regulations
A December 2023 report by a Vietnamese venture capital firm Kyros Ventures covered 5,268 participants in a survey.
Out of these participants, over 70% stated that cryptocurrencies make up more than half of their asset portfolio.
Notably, 33.3% of Chinese Investors still hold a large section of stablecoins making them second place to only Vietnam.
Although the crypto ban is still in place, numerous investors in China still trade on centralized exchanges according to the report.
Comparatively, Hong Kong is one of the regions in Asia keen on becoming a key player in the crypto space.
Similarly, South Korea, seeks to promote transparency and discipline among crypto users while protecting them.
So, China remains one of the biggest markets for crypto adoption despite the challenges.