illegal forex operations in China

Key Points:* Sichuan authorities disclose forex-crypto operation case in Chengdu.

• 3.9 billion yuan involved in cross-border transactions.
• 21 suspects arrested, signaling increased regulatory scrutiny. Sichuan Public Security Bureau revealed operations involving illegal cross-border forex and crypto transactions since August 2021 in Chengdu, arresting 21 individuals. This reflects enhanced measures against financial misconduct in China.

Amid heightened financial regulations, this operation underlines China’s stringent stance on cross-border currency exchanges through illicit means, prompting industry scrutiny.

Sichuan Crackdown: 21 Arrested Over 3.9 Billion Yuan in Deals

Public Security in Sichuan announced the apprehension of 21 individuals linked to illegal forex and virtual currency operations. The incident involved setting up companies in Chengdu since August 2021 for cross-border transactions. Using social networks, the group targeted potential clients and worked with domestic forex agents for 3.9 billion yuan worth of transactions.

The resulting regulatory actions in response to this case highlight a trend. China’s focus on tackling illegal financial activities is evident as they actively crack down on unauthorized currency trades and the use of virtual currencies to bypass financial rules. As the Supreme People’s Procuratorate, Scientific Research Division, China, noted, “We collaborated with the State Administration of Foreign Exchange to publish example cases and sternly crack down on illegal activities related to foreign exchange” (source).

Industry experts and stakeholders have voiced their concern over such practices. The ongoing crackdown aims to deter similar cases, ensuring adherence to legal forex dealings. This enforcement effort underscores China’s commitment to curbing financial crimes and protecting economic integrity.

Historical Context, Price Data, and Expert Analysis

Did you know? China’s intensified crackdown on illegal forex operations mirrors efforts seen in the past, including significant criminal fines and regulatory measures to combat the misuse of digital currencies.

Ethereum (ETH) currently trades at $2,584.79, with a market cap of 312.06 billion USD, reflecting a 0.17% price change in the last 24 hours, according to CoinMarketCap. Over the past 30 days, Ethereum’s price surged by 62.87%, despite a 4.97% decline over 90 days.

Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 05:20 UTC on May 16, 2025. Source: CoinMarketCap According to Coincu’s research team, China’s regulatory actions may influence financial governance trends globally. This scrutiny potentially impacts how cryptocurrencies are perceived in economic activities, aligning with the global movement towards standardized regulations to protect financial structures. More insights can be drawn from similar cases where ten Chinese nationals were charged with large-scale hacking operations.