China will always remain a controversial country when it comes to handling cryptocurrencies. This is primarily due to all of the illicit activities taking place within its borders.
In a new crackdown against illegal crypto money streams, the Chinese government has taken a different approach.
China Targets Crypto Bank Accounts
Rather than collecting data for a future investigation, thousands of bank accounts have been frozen in recent weeks.
All accounts have their funds frozen due to cryptocurrency trading activities.
It would also appear that nearly all bank accounts belong to OTC crypto users, which is rather interesting.
For the government, most of these accounts can be allegedly linked to money laundering and other crimes.
Moreover, the Chinese officials claim that Tether’s USDT is often sued in illicit transactions.
Unlike Bitcoin, a stablecoin always maintains its fixed value, making it more appealing to transfer large sums of money.
The big question now becomes whether there is evidence to warrant the freezing of these bank accounts.
It is very well possible that none of the affected users ever engaged in illegal activities.
All of this is part of a broader investigation in China to curb money laundering and CNY outflows.
The role of cryptocurrenceis should, for obvious reasons, not be underestimated in these efforts.