Australia’s Changjiang Currency Exchange, a money transmitter business, has been involved in a massive money laundering scandal worth 230 million Australian dollars ($145 million). The scandal came to light after a 14-month investigation, which resulted in the arrest of seven individuals, including four Chinese citizens and three Australian nationals. The investigation revealed that Changjiang Currency Exchange, operating under the guise of a legitimate currency exchange business, helped launder dirty funds and tainted cryptocurrency from investment scams and unregistered crypto exchanges.
Law enforcement officials discovered irregular traffic at Changjiang kiosks across Australia during a time of strict COVID-19-related lockdowns, leading to the investigation. One incident involved a 37-year-old Chinese national who allegedly used Changjiang’s services to launder AU$100 million ($63 million) received from a multinational Ponzi scheme. The police operation resulted in the seizure of AU$21 million ($13.27 million) in cash and luxury items believed to have been purchased using the proceeds of crime.
Bitget, a crypto derivatives exchange, has seen tremendous growth and currently holds the position of the fourth-largest exchange by volume. The exchange’s market share has risen to 9.43%, a significant increase compared to negligible volume just two years ago. Bitget reported onboarding over 9,000 traders and 85,000 followers or copy-traders during Q3 2023, resulting in a net trading profit of $6.7 million. Despite this success, industry trading activity dropped by 23% year-over-year to $4.8 trillion in the quarter.
China, known for its harsh crackdowns on private blockchain enterprises, has recently shown signs of softening its stance. Alibaba’s flagship peer-to-peer marketplace, Xianyu, has removed its censorship of “nonfungible tokens” related keywords in its search tool and relisted Topnod NFT collectibles minted on Alibaba’s Ant Blockchain. Previously, regulatory uncertainty prohibited Topnod digital collectibles from listing on secondary markets. The Chinese government plans to launch its official NFT trading platform, which is still in development.
Residents of several Chinese provinces can now submit and validate their health insurance claims using blockchain technology. In partnership with Alibaba’s Ant Insurance, users in Shanghai, Zhejiang, Jiangsu, and Anhui provinces can submit claims online, which are then verified using blockchain for authenticity. The reimbursement process has become significantly faster, with one individual receiving a full reimbursement of 130,000 Chinese yuan ($17,800) within two hours. The use of blockchain technology improves efficiency, prevents fraudulent claims, and enhances information sharing between insurance providers and medical professionals.
AI and Blockchain Technology Enhance Law Enforcement Surveillance
The Jianpu People’s Court in Huaian, China, is implementing a combination of AI recognition, big data, and blockchain technology to improve law enforcement surveillance. The court has introduced an “all-purpose” system that monitors visitors entering and leaving court premises. The system immediately alerts court bailiffs when a visitor is identified as trespassing in an unauthorized area. This technology reduces the need for extensive patrolling of hard-to-monitor areas, allowing court bailiffs to have access to all visitors’ movements and details within the premises. Augmented reality is also being utilized to enhance visibility in hard-to-see areas for better resolution and surveillance.
The money laundering scandal involving Changjiang Currency Exchange reveals the need for stricter regulations and enforcement in the cryptocurrency industry. The emergence of Bitget as a major player in the crypto derivatives market demonstrates the growing popularity and adoption of digital assets. China’s softened stance on NFTs and the use of blockchain technology in health insurance claims and law enforcement surveillance highlight the country’s increasing recognition of the potential benefits of blockchain technology. As blockchain continues to evolve and disrupt various industries, it is crucial to strike a balance between innovation and regulation to ensure its safe and responsible usage.
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