Chinese authorities uncover USDT foreign exchange crimes involving about 2.6 trillion won in transactions…Will this lead to tighter regulation?
Summary
- Chinese authorities detected illegal foreign exchange transactions using USDT and found 18 people guilty.
- The detected transaction volume totaled 13.3 billion yuan (about 2.5931 trillion won).
- The crackdown could lead to stricter regulation of foreign exchange derivatives trading, but it assessed there was no direct impact on major crypto assets such as Bitcoin or Ethereum.
Chinese authorities have reportedly uncovered a criminal organization conducting illegal foreign exchange transactions based on Tether (USDT) and found 18 related individuals guilty. The total transaction volume was estimated at 13.3 billion yuan (about 2.5931 trillion won).
According to crypto-focused media CoinKu, the Putian City People's Court recently found 18 defendants guilty of illegal foreign exchange transactions and money laundering using USDT. Authorities tracked the network through technical investigations and are reported to have blocked the laundering process through cash withdrawals.
The outlet said, "China's tough law enforcement could lead to tighter regulation of foreign exchange derivative trading in the future," but also assessed that "this action did not have a direct impact on the flows of major crypto assets such as Bitcoin or Ethereum."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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