These addresses received $2 billion in cryptocurrency from
illicit sources as well, making China a large player in digital-currency
related crime, it added. The report analyses China's cryptocurrency activity
amid government crackdowns.
However, China's transaction volume with illicit addresses has fallen drastically over the two-year period in terms of absolute value and relative to other countries, Chainalysis said. The big reason is the absence of large-scale Ponzi schemes such as the 2019 scam involving crypto wallet and exchange PlusToken that originated in China, it noted.
Users and customers lost an estimated $3 billion to $4
billion from the PlusToken scam.
The vast majority of China's illegal fund movements in
crypto has been related to scams, although that has declined as well, the
Chainalysis report said.
"This is most likely because of both the awareness
raised by PlusToken, as well as the crackdowns in the area," said Gurvais
Grigg, global public sector chief technology officer at Chainalysis, in an
email to Reuters.
The report also cited trafficking out of China in fentanyl,
a very potent narcotic pain medication prescribed for severe pain or pain after
surgery.
Chainalysis described China as the hub of the global
fentanyl trade, with many Chinese producers of the drug using cryptocurrency to
carry out transactions.
Money laundering is another notable form of crypto-based
crime disproportionately carried out in China, Chainalysis said.
Most cryptocurrency-based money laundering involves
mainstream digital currency exchanges, often through over-the-counter desks
whose businesses are built on top of these platforms.
Chainalysis noted that China appears to be taking action
against businesses and individuals facilitating this activity.
It cited Zhao Dong, founder of several Chinese OTC
businesses, pleading guilty in May to money laundering charges after being
arrested last year.
© Reuters
0 comments:
Post a Comment