China Payment and Settlement Association Issues Risk Alert, Rising Illegal and Criminal Activities Using Virtual Currencies and Other Forms

According to official news, recently, China Payment Clearing Association organized some of its members to hold a symposium on industry risk information and joint prevention of information sharing of special merchants. The association issued risk tips to the whole industry after summarizing and sorting out the situation. The overall situation and changing characteristics of current payment risks include using virtual currency and blockchain technology to evade fund traceability, using virtual currency as a gambling running medium or using virtual currency for top-up transactions. The use of virtual currencies and other forms of illegal and criminal activities are gradually on the rise, and because of the anonymity, convenience and global nature of their transactions, they are gradually becoming an important channel for cross-border money laundering. At the same time, there has been a pattern of using virtual currency as a medium for gambling runs. The main technique is: the gambler pays the money to the runner, the runner pays the virtual currency to the gambling platform to complete the bet, and finally the dealer uses the virtual currency to exchange the cash back to the runner or the virtual currency acceptor. Statistics show that nearly 13% of gambling sites support virtual currency platform top-ups, using the anonymity of blockchain technology to mask the gambling money transfer path through a large number of C2C transactions, enhancing the difficulty of tracing the money chain.

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