Gambling Gang uses crypto for illegal purposes

[fiulpro]

In china the government reported a case where a gambling Gang as they stated were using cryptocurrencies to transfer funds abroad. According to them trillions of yuan's are illegally being transferred abroad due to gambling.

They are taking it further by saying how it's not just a financial problem but it's a conspiracy against their nation as a whole.

Now they are making this bigger by saying how these cryptocurrencies and gambling are making it harder to track the transactions. BUT ! Isn't it easier to track these transactions as compared to fiat ??

Gambling in China is illegal under Chinese law and has been officially outlawed since the Communist Party took power in 1949. Any form of gambling by Chinese citizens, including online-gambling, gambling overseas, opening casinos overseas to attract citizens of China as primary customers, is considered illegal.

From wiki


Now gambling in China is Illegal so according to them if anyone from China is engaging in Gambling online overseas even the online casinos might be held accountable.  But I think some casinos might be bypassed by using VPN.

Shouldn't the Chinese authorities in lieu of the statement where they say that they are illegally transporting trillions of yuan's online , make the gambling legal and make sure to have well established rules instead of putting a hand out on the whole industry ?

Plus if people wants to engage it's their personal preference not the fault of the on-line crypto casinos.

https://cointelegraph.com/news/chinese-govt-official-gambling-gangs-use-crypto-to-transfer-funds-abroad/amp

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[TGD]

Money laundering via international transferring of money using gambling is the common way of Chinese syndicate. They are financing different gambling casino all over the world and wire transfering via online gambling. In my country, they have a casino that registered and  strongly supported by our government. Most of the players are big time Chinese and flying here just to gamble.

The trick about using crypto is the Authority didn't know what is the Operator Wallet address, Yes you can easily transaction but if you can determine there wallet address, Unlike Fiat money, Banks know all your credentials upon opening your bank account and Chinese government have full control about the privacy of all Chinese. They can easily track down huge amount of money that going out there country.

[Bttzed03]

In china the government reported a case where a gambling Gang as they stated were using cryptocurrencies to transfer funds abroad. According to them trillions of yuan's are illegally being transferred abroad due to gambling.

They are taking it further by saying how it's not just a financial problem but it's a conspiracy against their nation as a whole.

Welp, that's just crypto being crypto - borderless/no intermediaries/censorship resistant (in the case of bitcoin at least).

News like this are getting old to be honest.

Now they are making this bigger by saying how these cryptocurrencies and gambling are making it harder to track the transactions. BUT ! Isn't it easier to track these transactions as compared to fiat ??

Gamblers using mixers, coinjoins, privacy coins like Monero would make it hard to track movement of funds.

If gamblers would try to move fiat online (banks/money changers), it would be easier for the Government to track and freeze them. If gamblers would try to move bulks of physical cash, they will have to use backdoor entries because they won't be allowed at legal entry points in any country with that amount of money for sure.

[AicecreaME]

I didn't really get it why it's illegal if the money they're transferring abroad is from the profits they made in gambling, if that's the case.

But if they are just a gambling gang alone and they are being funded by someone who has the power and transferring money via cryptocurrency abroad for illegal purposes, then the blame shouldn't be on gambling. Gambling was just "involve" since the gang is named Gambling but not making any big profits in gambling.

The other one is if they've been called Gambling gang because they are the owner of a certain gambling site that's been used in money laundering, then shutting down the gambling sites in China was the right decision.

[fortunecrypto]

In china the government reported a case where a gambling Gang as they stated were using cryptocurrencies to transfer funds abroad. According to them trillions of yuan's are illegally being transferred abroad due to gambling.

It's really illegal here in our country we have an specific amount of money that you can transfer out of the country legally, there is an additional and you have to secure permit if you want big funds.

Now they are making this bigger by saying how these cryptocurrencies and gambling are making it harder to track the transactions. BUT ! Isn't it easier to track these transactions as compared to fiat ??

If they use Mixer it will be hard to track these transactions, fiat can easily track than Cryptocurrency because they have to use illegal means to transport the fiat

Shouldn't the Chinese authorities in lieu of the statement where they say that they are illegally transporting trillions of yuan's online , make the gambling legal and make sure to have well established rules instead of putting a hand out on the whole industry ?

 

unfortunately China is a communist country and they want to have control on everything, although they have territories where gambling is legal, these are just for tourist and and their cash cow as well

[Reid]

As always, they want control over everything especially if it's about the money.

Now gambling in China is Illegal so according to them if anyone from China is engaging in Gambling online overseas even the online casinos might be held accountable.  But I think some casinos might be bypassed by using VPN.

It's true. They are hiding in different countries, mostly near China.
I don't think they want to go so far and stay within the range where they could still use their language.
Not just individual Chinese gambling but more like a company of Chinese that runs a gambling business.
I guess other countries' authorities are not helping them trace it because of a bad reputation or just not on good terms with China.

[Becky666]

Why will anyone government blame this on gambling platforms? Without this gambling of a thing, can't anyone from china launder money from the country(are there not VIPs who do this on daily bases)?. There are series of money laundering in china through cryptocurrency, so, why making things complicated for true gamblers in the land?, i believe it's a conspiracy against casinos owners; both the traditional and the online base platforms owners.

[Yamifoud]

This the reason why some of their people migrating to outside China and have their business, and sometimes doing illegaly.

I don't see any good reason why having this kind of law. What they would like to show and how their leaders trying to imply is that all of their people will obey and being controlled. How's that devastating act that it gives us no freedom to make decisions and do what we want.

China is very influential and that is likely what they do to us in this pandemic situation. I'm so lucky that I was not living in China...

[ecnalubma]

Even if the Chinese government are doing their best to crack down money launderers and notorious gamblers they can still get away and continue their illegal business in any way possible. Privacy coins are the best tool for elicit activities by criminals or financing terrorists taking advantage of the zero foot print technology, won’t wonder if centralized and regulated casinos will stop supporting privacy coins in the near future most especially that authorities are serious in tracking illegal funds in and out in the crypto space.

[ethereumhunter]

This the reason why some of their people migrating to outside China and have their business, and sometimes doing illegaly.

Maybe people feel that the law is too strict for them, making them not have their business. Maybe that attracts people to do illegal things to have more money. I think that is not just happening in the gambling business, but it happens to other business because maybe that people run a legal business, but behind that, they also run an illegal business. It's like they have two faces for their government.

[Yudhisthir]

Gambling in itself is illegal in China. Some wealthy people do visit Hong Kong and Macau to gamble while Chinese near the boarder visit the bordering country for gambling. But for most of the people has no choice than to indulge in illegal gambling. The customs check in China is strict and it's difficult now to move money through and into China, so crypto coimes as a choice.
It's a classic example of authorities not being able to restrict the flow of money.

[Mauser]

Gambling in itself is illegal in China. Some wealthy people do visit Hong Kong and Macau to gamble while Chinese near the boarder visit the bordering country for gambling. But for most of the people has no choice than to indulge in illegal gambling. The customs check in China is strict and it's difficult now to move money through and into China, so crypto coimes as a choice.
It's a classic example of authorities not being able to restrict the flow of money.

I agree with you, crypto currencies is just a tool for the people. If they had no access to crypto currencies the people would still gamble. It might make it a bit easier, but banning crypto coins just to fight illegal is wrong in my opinion. There are so many investors in the crypto 5eho are not using bitcoins to gamble. They just want to store value in a non fiat currency and are looking for security.

[kryptqnick]

Now they are making this bigger by saying how these cryptocurrencies and gambling are making it harder to track the transactions. BUT ! Isn't it easier to track these transactions as compared to fiat ??

Gambling in China is illegal under Chinese law and has been officially outlawed since the Communist Party took power in 1949. Any form of gambling by Chinese citizens, including online-gambling, gambling overseas, opening casinos overseas to attract citizens of China as primary customers, is considered illegal.

 

I do think that tracing crypto gambling is easier. The transactions are recorded, so it can be determined whether a person won money or laundered it through a casino. If one comes with a bunch of cash to a casino, nobody would ask about the origins of this money, and one can gamble there and leave with the rest of the money, now 'clean' as winnings. As for cryptos and online casinos, I think China should make them legal and enjoy the additional income to the economy instead of banning it altogether. It would be easier to have the situation under control if there's a legal space for that.

[dimonstration]

I didn't really get it why it's illegal if the money they're transferring abroad is from the profits they made in gambling, if that's the case.

Since they have laws that are banning gambling then it's illegal or the illegal games they are doing is really against the law that can harm others. They are very particular in terms of having businesses and doing transactions that can be a lose in their economic earnings, so doing crypto transactions especially from gangs who do gain profit illegally is really a problem. It will cause trouble to them if they will not track the transactions which are really hard to be track as these gang is surely well planned their way to make their transactions success without being caught

[robelneo]

Now gambling in China is Illegal so according to them if anyone from China is engaging in Gambling online overseas even the online casinos might be held accountable.  But I think some casinos might be bypassed by using VPN.

Shouldn't the Chinese authorities in lieu of the statement where they say that they are illegally transporting trillions of yuan's online , make the gambling legal and make sure to have well-established rules instead of putting a hand out on the whole industry ?

Plus if people wants to engage it's their personal preference not the fault of the on-line crypto casinos.

https://cointelegraph.com/news/chinese-govt-official-gambling-gangs-use-crypto-to-transfer-funds-abroad/amp

They have their own policies that are very much different from other countries, they want to control people, resources, and production the Chinese administration thinks that gambling is not good for their people, but if you check on other countries like the Philippines they operate offshore gaming platform there, they do not want their people to gamble yet they run gambling sites for foreigners.

[coupable]

I didn't really get it why it's illegal if the money they're transferring abroad is from the profits they made in gambling, if that's the case.

Since they have laws that are banning gambling then it's illegal or the illegal games they are doing is really against the law that can harm others. They are very particular in terms of having businesses and doing transactions that can be a lose in their economic earnings, so doing crypto transactions especially from gangs who do gain profit illegally is really a problem. It will cause trouble to them if they will not track the transactions which are really hard to be track as these gang is surely well planned their way to make their transactions success without being caught

I think about the possiblity of the gang collaborate with some of the gambling platforms to help them transfer money outside of China then swap it into crypto. Chineese authority can't really track the crypto transactions but i think it's almost possible to track the fiat transactions which should be made via simple wires.
As i believe that gambling activities should be considered as personal choice/decision where the authority hasn't a reason to interfer, i think also that moving large amount of money outside the country can be considered as a threaten to the whole economic system of the country if it's made by any illegal method .

[sunsilk]

I didn't really get it why it's illegal if the money they're transferring abroad is from the profits they made in gambling, if that's the case.

There's a connection to what TGD has said in his first sentence.

That's a pretty common thing that huge groups or whoever they are with large sums of money being transferred. The first thought of the state would be money laundering and they had to take action of stopping it.

Whether they will say that it's legit money from casino profits, they wouldn't believe you. Just money matters which has always been difficult to go against the state if you're living there. No exemption I guess.

[romero121]

Plus if people wants to engage it's their personal preference not the fault of the on-line crypto casinos.

Engaging into gambling can be considered as ones own preference, but in each and every citizens life the government has got responsibility. Governments won't ban or restrict people from gambling without reason, everything has got reason. We have seen lot many into gambling addiction, but no one gets exposed same as that affected with drug addiction.

Governments try to find opportunity for large volume transactions. Even if it was under regulated and taxed money it'll be related to some form of business when the transaction is done cross border.

[Poker Player]

I don't find suprising that governments and other centralised institutions use cases like this one to pour some shit on cryptos. It is clear to us in this forum that the greatest tool for money laundering is fiat, but no one is considering banning it or demonizing it.

As for being difficult to trace, fiat is usually more difficult. In this case, if mixers or other systems have been used, the authorities will not have an easy time tracking the funds.

[Ryker1]

Well, that is normal as of now and I did not surprise by the news because we heard this as always that there a fraud using bitcoin. Not only bitcoin or cryptocurrencies are prone to illegal activity, but fiat can be used also for that activity, they should not blame bitcoin --everything that has a value will become a root of evil sometimes. Or why not blame the gambling sites like this. Gambling is China was already illegal for a long time, that is why we can blame their government if as of now they had taken action for the sake of their citizen and their government as well.