Five ministries of China will fight cybercrime

This week China’s state CCTV channel 2 reported that the people’s Bank of China (PBOC) and the Ministry of public security, in cooperation with other regulatory authorities, will work together to combat cyber crime, which often masquerades as financial innovation. It is easy to understand that this struggle will inevitably affect the sphere of cryptocurrency.

According to CCTV 2, the people’s Bank of China, the Supreme people’s Procuratorate, the Supreme people’s court, the Ministry of public security (MOB), Ministry of industry and information technology – a total of five agencies unite to combat financial and Internet fraud.

The NBK is the Central Bank and financial regulator of the country, is currently the largest such Bank in terms of assets. MOB is the national police, which includes about 2 million employees. Financial innovation in China has its price: the crimes on the darknet became more complicated — from a traditional phone fraud to more advanced financial crime.

If Suyang (Li Xuyang), head of security and anti-fraud Tencent AI Lab, said that the cryptocurrency is now held in high esteem by financial criminals.

«In recent years more and more projects use the popular concept of the blockchain to create a new token or virtual currency. We found more than 2,000 types of tokens with an active user base and 3 000 fake platforms promoting fraudulent blockchain products.»

In a joint statement, the five ministries emphasized that regulators should cooperate with companies to combat new financial crimes and strengthening the traditions of the community, responsible for cybersecurity. The Deputy head of the Ministry of public security, Shi Jun (Shi Jun) said that his office will initiate a special campaign to combat all types of Internet fraud.

The words «special campaign» provoked the rumors that the MOB may arrest some influential figures in the industry as a warning to others.

«The cryptocurrency industry is filled with speculation and fraud,» said
a Weibo user with more than a million subscribers. «I think this time power, just pull in someone from industry.»

At the time of writing, an event occurred which might have nothing to do with the decision of the authorities, but still inspires some anxiety. Representatives of Bixin Wallet informed its users that on January 17, OTC-trade on the site will be suspended due to «regulatory uncertainty.»

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