Chinese Gambling Gangs Straining the Economy Through Digital Currency

The Yuan Renminbi is the fiat currency of the People's Republic of China.

China has been growing rapidly, and its economy is booming. Its sphere of influence now spreads far and wide to its many trading partners in developing countries. Increasingly, the nation has also become a big supporter of cryptocurrency and the systems that underlie it in the blockchain. The Chinese government recently passed new regulations to monitor cryptocurrency in the country, putting it under the purview of the country’s Law of Property. The country is also preparing for the release of its own Central Bank Digital Currency (CBDC), the digital yuan. Cointelegraph has now reported that illegal gambling syndicates in China are moving over a trillion yuan out of the country using digital assets.

Illegal casino and gambling operators allow over a trillion yuan worth of funds out of the country annually. This occurs mostly through online gambling platforms, where digital currencies are used to pay out customers. This vast sum of unregulated money leaving the country could prove to be a huge financial risk area.

The Chinese Ministry of Public Security is now focusing on supervising more intently the gambling factions within the country. A ministry spokesman said that they experience significant difficulty in tracing and tracking illegal gambling platforms online. This is due to the deep collaboration between owners and operators of gambling platforms and organised crime syndicates in China.

The South China Morning Post further reported that mainland China prohibits all forms of casinos and gambling. Thus, any operations of this sort are illicit and unregulated, allowing for ease of capital flow out of the country. Further, the crackdown on illegal casino operators comes as the aforementioned ministry is increasing efforts to curb illicit outflow of capital from the country.

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Raïs Tarek 87 Articles
Journalist and lawyer, with a passion for global politics, economics and current affairs.