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<h3 class="wp-block-heading" id="chinese-authorities-have-exposed-a-massive-underground-banking-operation-involving-usdt-worth-nearly-2-billion-highlighting-the-ongoing-struggle-to-enforce-the-nation-s-stringent-cryptocurrency-bans">Chinese authorities have exposed a massive underground banking operation involving USDT worth nearly $2 billion, highlighting the ongoing struggle to enforce the nation’s stringent cryptocurrency bans.</h3>
<h2 class="wp-block-heading" id="major-crypto-bust-in-chengdu">Major Crypto Bust in Chengdu</h2>
<p>On May 15, the Chengdu Municipal Public Security Bureau <a href="https://mp.weixin.qq.com/s/JAD9WLy3Iw1E9zXxR4e_Nw?poc_token=HAf2RWajd3he9Bp6-MnnzPEahQqyyaXEyByfuS9g" target="_blank" rel="noopener noreferrer nofollow">announced </a>the successful detection of a significant underground bank operation. The investigation, initiated in November 2022 by the Longquanyi District Branch, led to the discovery of illicit activities that had been ongoing since January 2021.</p>
<p>The underground bank primarily smuggled medicine, cosmetics, and investment assets overseas, operating under the radar until law enforcement closed in. The crackdown resulted in the arrest of 193 suspects across 26 provinces and the dismantling of two major operations in Fujian and Hunan.</p>
<h2 class="wp-block-heading" id="the-role-of-tether-usdt">The Role of Tether (USDT)</h2>
<p>At the core of this operation was the stablecoin Tether (USDT), which the organization used to bypass national foreign exchange <a href="https://btc-pulse.com/regulation/" rel="noopener noreferrer nofollow">regulations </a>and facilitate illegal foreign exchange transactions. Cryptocurrencies provided anonymity and freedom from traditional financial oversight, making them an attractive option for conducting illicit activities.</p>
<h2 class="wp-block-heading" id="crypto-activity-continues-despite-crypto-bans">Crypto Activity Continues Despite Crypto Bans</h2>
<p>Despite the Chinese government’s strict anti-crypto stance, which includes banning cryptocurrency exchanges in 2021, citizens have found ways to circumvent these regulations. Decentralized exchanges (DEXs) have become increasingly popular, allowing users to trade <a href="https://btc-pulse.com/notcoin-not-finally-released-revolutionizing-market/" rel="noopener noreferrer nofollow">cryptocurrencies </a>without centralized oversight.</p>
<p>Many individuals have also turned to virtual private networks (VPNs) to mask their activities and access crypto markets undetected. As a result, China ranks second globally in stablecoin holdings, with 33.3% of investors reportedly holding multiple stablecoins according to Kyros Ventures.</p>
<h2 class="wp-block-heading" id="bitcoin-etf-provides-legal-crypto-exposure">Bitcoin ETF Provides Legal Crypto Exposure</h2>
<p>Despite these stringent bans, recent developments have offered a glimmer of legal <a href="https://btc-pulse.com/interactive-brokers-now-allows-uk-trade-crypto/" rel="noopener noreferrer nofollow">crypto </a>exposure for Chinese investors. The launch of Hong Kong-based spot Bitcoin and Ethereum exchange-traded funds (ETFs) has provided a legitimate avenue for crypto investments.</p>
<p>China AMC CEO Yimei Li noted that these ETFs are a significant milestone in making cryptocurrency investments more accessible to mainland Chinese investors. The Bitcoin ETFs have quickly gained traction, securing $230 million in assets under management within their inaugural week, reflecting the pent-up demand for crypto assets in China.</p>
<h2 class="wp-block-heading" id="conclusion">Conclusion</h2>
<p>The uncovering of the $2 billion USDT underground banking operation underscores the ongoing challenges faced by Chinese authorities in enforcing cryptocurrency bans. Despite rigorous crackdowns, the persistent demand for crypto and innovative ways to bypass regulations highlight the complex landscape of cryptocurrency in China.</p>

China Police Uncover $2B USDT Underground Banking Operation

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