When I saw this report yesterday I didn’t think it was an actual story. You know how people tend to create stories out of rumour these days so I had to be careful not to be deceived by this news. But then hold on; it’s China again? A country that has recently decided to ban the use of crypto in the country due to the high consumption of electricity due to Bitcoin mining. A country that has lost its top spot of miners to the US. Yes, it’s a story worth looking at.
According to reports, a Chinese man who allegedly purchased an amount of 13 thousand dollars in USDT using his credit card last year was recently convicted of a crime and sentenced to 9 months in jail. This comes shortly after China decided to enforce their crypto ban rule in the country. According to the country, they are more serious than ever about the said rule and will do what it takes to reduce the consumption rate of crypto and blockchain technology in their country.
Mr Chen, the convicted man was convicted of aiding and assisting in fraud. According to reports Mr Chen was contacted by a man called Mr Lin to post his bank details through their social media chat we chat in China. After Mr Chen gave out his bank details to Mr Lin Mr Chen then received seven fiat yuan transfers from Mr Lin, which both parties claimed Mr Chen used in purchasing USDT from him.
Later on, the said USDT was then sent back to Mr Lin by Mr Chen and in the process earned an amount of 147.1 yuan which the court claimed as a commission.
The court ruled that in this case Mr Chen aided Mr Lin in Fraud and has been dented to 9 months in prison and also fined.
The court believes that this is an act of fraud since the funds were sent back to Mr akin after the purchase was made by Mr Chen.
What is we chat?
We chat is China’s version of WhatsApp. In China the population uses WeChat and the use of WhatsApp is not allowed in the country. The issue with this is that all conversations are tracked by the Chinese government as their developer Tencent collaborates with the Chinese government. So if you were wondering how the government had information on this type of information, here’s your answer.
Is China's crypto crackdown working out .
This is not the first that China has acted rather out of this on a thing like this. In July a multi-chain protocol with 1.5 billion dollars was reportedly shut down by the Chinese police after arresting its CEO. After this arrest, they believe that users are swapping funds into privacy tokens and stablecoins and bridging them out of the protocol. Since this arrest, any news of crypto trade has been received harshly by the Chinese authorities.
Well, so far so good for the Chinese government as things seem to be working out how they want it to. But will it work out like this forever? Definitely not. Even after the ban on crypto mining in the country, it was allegedly reported that mining in the country was on the rise once more. At the end of the day, we’ll say all they’re doing is fighting a lost battle.
What they are doing is only stopping investors from getting into the country since their stance on crypto.
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