China’s cryptocurrency transactions related to criminal activity have declined significantly in recent years, a new report said. At the same time, the Hong Kong Special Administrative Region has seen a surge in crypto crime this year, with authorities attributing the surge to the popularity of crypto investments. Chinese crime-related crypto transactions are falling, according to Chainalysis China is a leader in the global crypto space, not only because of its control over a large chunk of Bitcoin’s hashrate, but also in terms of the activity of its crypto businesses and users. However, with the government’s current offensive against decentralized money, including a crackdown on the mining and trading of cryptocurrencies, the role of the People’s Republic is likely to diminish. That’s already happened to China’s share of crypto-based crime, according to a report by Chainalysis. Between April 2019 and June 2021, Chinese crypto addresses sent over $ 2.2 billion worth of digital currency to addresses associated with illegal activities such as fraud and darknet markets and received over $ 2.0 billion Dollars, the blockchain forensics company announced on Tuesday. But the country’s transaction volume with such addresses has declined significantly in the two years. This trend is true both in terms of value and when compared to other nations, as research shows. Chainalysis commented: While China remains one of the highest ranked countries in terms of illegal transaction volume, it has far surpassed all others, suggesting that cryptocurrency-related crime in the country has declined. Most of China’s illegal cryptocurrency flows have been linked to fraud, the report said. According to the authors, the decrease is mainly due to the lack of large-scale Ponzi programs like the Plustoken scam 2019, the proceeds of which have been laundered across Chinese platforms. Quoted by Reuters, Global Public Sector Chief Technology Officer at Chainalysis Gurvais Grigg stated: This is most likely due to both the awareness heightened by PlusToken and the raids in the area. Other cryptocurrency-related fund movements had to do with money laundering, which often affected the OTC desks of major digital asset exchanges, as well as trading in fentanyl – with China in many cases a hub for global pain reliever trade facilitated by cryptocurrency transactions . Hong Kong records spike in crypto-related criminal cases Meanwhile, the Hong Kong authorities have noticed the opposite trend. As the mainland puts more pressure on the crypto space, criminal activity involving cryptocurrencies in the city has increased this year, according to a. reached a record level report from the crypto news agency Forkast. In the first half of 2021, almost 500 criminal cases were registered, the publication said. This year’s losses are Hong Kong dollars 214 million ($ 27.5 million), almost double what it was last year. Law enforcement agencies have attributed the surge to the growing popularity of crypto investments in China’s Special Administrative Region. People spending more time online during the Covid-19 pandemic are another important factor as it gives scammers more opportunities to lure individuals into fraudulent plans. Money laundering, investment fraud, robbery, and personal transactions are the most common sources of cryptocurrency in Hong Kong. The report also notes that the city is not the only jurisdiction affected by the rise in cryptocurrency, pointing to an average annual increase of 300% in similar cases registered in the US between 2017 and 2020. What do you think of the results of the two reports? Let us know in the comment section below. Photo credits: Shutterstock, Pixabay, Wiki Commons Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. does not provide investment, tax, legal or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.