Efe Nail Saltık 
Chinese authorities have cracked down on an underground bank that used cryptocurrency to conduct illegal currency exchange activities worth 2.14 billion yuan ($295.8 million) between Chinese yuan and South Korean won.
Reports from local police in northeast China‘s Jilin province revealed the arrest of six suspects believed to have played a key role in organizing illegal operations spanning China and South Korea.
The suspects facilitated unauthorized currency exchange activities by taking advantage of cryptocurrency’s inherent features such as transaction privacy and decentralized management, police said.
Investigations revealed the group’s modus operandi, which included leveraging local accounts for the receipt and transfer of funds, as well as executing over-the-counter cryptocurrency transactions. Its clients included a variety of organizations such as South Korean purchasing agents, cross-border e-commerce platforms, and import-export businesses, and it assisted them in exchanging Chinese yuan for South Korean won.
China’s strict capital control policies over the years have led some individuals and organizations to turn to cryptocurrency as a way to bypass regulatory restrictions.
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