Hong Kong police successfully detained a student & 5 other people over alleged involvement in money laundering activities.
Hong Kong is a special administrative region of mainland China. Opposite of China’s crypto blanket ban, crypto trading is fully legalized in Hong Kong but under proper rules & regulations. In the present time, huge numbers of crypto firms are trying to secure a crypto license in the Hong Kong jurisdiction, to provide crypto services with full regulatory clarity.
On 14 July 2023, A local media report confirmed that Hong Kong police captured 6 people, including a student. Allegedly the student was helping other 5 people to conduct money laundering activities.
This gang was using cryptocurrencies as a tool in money laundering activities. So far these detained people conducted nearly $12.7 million worth of money laundering.
Hong Kong authorities said that they successfully caught the gang with the help of a student because, in the initial phase of the investigation, they found that the student was using his e-wallet for crypto purchases & sales but the origin of transactions was suspicious, as linked with international transactions & some criminal proceeds.
Earlier a few days ago, a report came to light that claimed that huge numbers of citizens from mainland China visit Hong Kong usually to trade cryptocurrencies offline.
The report alleged that Chinese citizens invest money in cryptocurrencies via some brokers and these brokers make huge money in the form of commision via offline crypto buy/sell activities in Hong Kong offline stores.
Such types of unethical activities are showing that the Hong Kong government is failing in terms of perfect crypto regulation. To date, crypto companies are open to establishing their crypto business under fully clear rules & regulations but Hong Kong failed to bring any rules against offline crypto traders.
Here offline crypto trading is not only a serious matter in Hong Kong & China but also in all other jurisdictions because it remains very hard to trace offline crypto buy and sell activities. Last month, a Chinese government official said that the use of cryptocurrencies via telegram messaging platform is surging rapidly in the country and the majority of the users are trading drugs.