As Hong Kong opens its doors to cryptocurrencies, China remains steadfast in its rebuke. According to Chinese media, the government recently arrested a man who bought cryptocurrencies with his debit card.
Although they banned cryptocurrencies for good in 2021, China’s relationship with currencies other than the yuan is as old as Bitcoin itself. For example, in 2009 the country banned all ‘virtual currencies’, but focused more on online games where your own credits were used.
Even with the state’s commitment, there are still frequent reports that Chinese people continue to use Bitcoin and other cryptocurrencies in the region.
Man arrested in China after buying cryptocurrencies
Chinese media explain the situation and point out that a man named Chen has lent two bank cards to another man named Lin. The intention would be the purchase of cryptocurrencies, banned in the country.
“The two bank cards received 7 transfers, resulting in a bank statement of 99,609 yuan (R$68,000)”noted the Chinese newspaper.
With money in hand, Chen transferred the amount to Alipay and WeChat accounts and then to a third card, which he used to buy the cryptocurrencies for Lin. As a commission, Chen would have received 147.1 yuan, about R$100.
Although it seems like a small amount, the government of China decided to prosecute Chen and recently sentenced him to 9 months in prison and a fine of 5,000 yuan (R$3,400).
According to the prosecutors in the case, cryptocurrencies are used to transfer and launder stolen money. Therefore, Chen allegedly broke laws regarding concealment and concealment of criminal proceeds.
Reports suggest that the Chinese cryptocurrency market remains strong
In an article published earlier this month, The Wall Street Journal pointed out that China is still Binance’s largest market. Of the more than 1.4 billion residents, about 5.6 million are said to have an account with Changpeng Zhao’s brokerage, with 911,560 active.
The traded volume is said to reach US$90 billion (R$430 billion) in one month. The broker denied the figures. While it is impossible to trade yuan against cryptocurrencies on the platform, some techniques, such as using VPN, allow users to bypass local authorities, allowing partial access to services.
Finally, while countries like Argentina and the US show pro-Bitcoin presidential candidates seeking new monetary solutions, China continues to go against the grain, led by an authoritarian government that seems to care little about its citizens.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
