China: Offender-Based World Cup Gambling Cryptocurrency Arrested

France national team striker Olivier Giroud, lifting the 2018 World Cup trophy while celebrating the Championship title after defeating Croatia in the final game at the Luzhniki Stadium, Sunday (15/7). France beat Croatia with the final score 4-2. (AP Photo/Martin Meissner)
Chinese authorities are reported to have captured six of the perpetrators behind the illegal gambling action for 2018 World Cup.

The action is considered illegal because the perpetrators make use of Cryptocurrency which is not regulated by the Government of China.

From the South China Morning Post report Monday (16/7/2018), the perpetrators managed to raise 10 million yuan or about 1.5 million US Dollars in the form of Cryptocurrency.

This platform is also running in the dark web so it cannot be accessed through a search engine.

After the arrest, local police immediately freeze the assets of the principals in the bank and confiscated the entire accumulated virtual currency.

Local police call for eight months, successfully prosecuting the perpetrators of 330 thousand registered users from a number of countries.

"The perpetrators also outsmart include manipulating the opportunities of the members, so that small possibility the participants to be able to win the bet," said the police.

Not only that, they also built a team that consists of more than eight thousand agents.

They were tasked to search for new members by using a pyramid scheme and will get a Commission when it succeeded in recruiting new members.

Just for information, the Government of China since September last year was already closing the transaction Cryptocurrency in the country. The activities of the initial coining offerings have been banned, including the Cryptocurrency-based fundraising.

Illustration of the Bitcoin (iStockPhoto)
Earlier this year, the Chinese Bitcoin miners in gait are indeed called the end. 

The reason, State regulators reported the Central Government asked the regions in order to shut down the mining action Bitcoin on its territory.

Based on the leaked documents reported by Bloomberg and Reuters, China is also planning to limit the supply of electricity to the perpetrators of the Bitcoin miners. In China, there are indeed known to the company that runs the mining action Bitcoin.

Their existence is considered problematic because electricity consumption is needed for the players so big. Whereas, the Governments are trying to distribute power more evenly to a number of areas.

It also produces mining stock speculation known as virtual currencies so that was considered too risky.

In the document, it is also mentioned in order that local Governments invited the miners to get out of the business Bitcoin. They are also required to report information related mining facilities are located in its territory Bitcoin, including the number of perpetrators who are already out.

Quoted from Quartz, Tuesday (9/1/2018), one of the Government officials had to confirm the truth of the document. According to him, the decision to mine restrictions Bitcoin is made in a meeting held in November last year.

A number of parties also mentions this rule out following the Chinese central bank's decision to close the market operating in that country in the Bitcoin September 2017. That step was chosen because the virtual currencies considered risky and speculative.

Mere information, China is known to have donated more than two-thirds of the bitcoin mining around the world. The country is known to have a factory large-scale bitcoin miners.

A number of big miners also reportedly has moved its activities to foreign countries, such as Canada and the United States. However, it is uncertain whether this regulation will effectively reduce mining bitcoin.

Illustration of the Bitcoin (iStockPhoto)
Limitation on the activity of the bitcoin is also done by regulators South Korea. It is known after the regulator in the country are doing a joint inspection against six local banks that offer virtual currency accounts at different institutions.

The use of virtual currency such as increasing bitcoin feared could lead to a surge in crime. Reported by Reuters, a joint investigation was carried out by the Financial Services Commission (FSC) and the Financial Supervisory Services (FSS).

FSC Chairman, Choi Jong-Ku, in the description of the official said the two regulators will check if the banks comply with the anti-money laundering regulations and the use of the original name to create an account.

"Virtual currency does not currently function as a means of payment and used for illegal purposes such as money laundering, fraud, and the activity of investors who are not true," said Choi.

The six banks are investigated is H Bank, Industrial Bank of Korea, Shinhan Bank, Kookmin Bank, Woori Bank and Korea Development Bank. Representatives of the Bank and Shinhan Bank NH declined to comment, while the rest have yet to be contacted.

Described Choi, regulators will be looking for ways to reduce the risk of trade-related cryptocurrency on the Carousel. This step will include closing the various agencies or companies that use the currency.

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