Crypto firms Halt Business in China After an Intense Government Crackdown

Richard Marley
May 24, 2021
3 minutes read
269

Cryptocurrency businesses have stopped their operations after the government led an intense investigation on the trading and mining of bitcoin. This hammered the digital currency amidst the spiked regulatory investigation worldwide.

Vice Premier Liu He led a State Council committee that announced that this crackdown is conducted in an effort to curb financial crime. The council has targeted the crypto business in China for the first time for such investigations. The financial regulators and the government have announced that the protection of the investors from scams and preventing money laundering activities are the priority concern of the government. The financial watchdogs and the government are still struggling over whether to make the industry strictly regulated or completely put a ban on it. The question of how to best regulate the industry is also a matter of concern for the regulators.

Crypto miners halt China business after Beijing’s crackdown, bitcoin dives https://t.co/M1XglCuV4q pic.twitter.com/cOQ7MYSiCm

— Reuters (@Reuters) May 24, 2021

Many famous cryptocurrency exchanges today suspended their operations for Chinese clients claiming regulatory risks and are now looking towards overseas businesses. Some of the exchanges have complied with the halting of new bitcoin rigs.

“Meanwhile, we’re contacting overseas service providers, to pave way for exports of mining rigs in the future,” Huobi Mall said via its official Telegram community, and asked clients “not to worry and calm down”.

Founder Jiang Zhuoer said in a blog post, “In the future, BTC.TOP will mainly conduct crypto mining business in North America. In the long term, nearly all of Chinese crypto mining rigs will be sold overseas, as Chinese regulators crack down on mining at home.”

Crypto exchange businesses are using technological equipment to verify the transactions of the virtual coin during the process to produce newly minted digital currencies.

“Crypto mining consumes a lot of energy, which runs counter to China’s carbon neutrality goals,” said Chen Jiahe, a chief investment officer of Beijing-based family office Novem Arcade Technologies.

The recent upheaval in the virtual currency industry is also the result of tighter regulations in the United States. Federal Reserve Chairman of the USA, Jerome Powell, also believes that digital currency is a threat to financial stability. He pointed out that the stricter regulations of the increasingly popular cryptocurrency must be warranted to avoid financial crimes.

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Along with the rise in virtual and remote work, the number of cases of recruitment fraud is increasing at an unprecedented pace, urging authorities to take decisive action against criminals. Especially the pandemic resulted in huge mass layoffs giving setbacks to many sectors, ultimately creating massive inflation across the globe.

Now that the pandemic’s effects are diminishing, 97 million new job roles are to be expected by the next year, which will expedite fraudulent practices in the talent acquisition sector. Companies should be on their guard and implement a joint action plan to counter rising recruitment scams to secure their onboarding process.

How do Online Recruiting Scams Work?

The scammers fraudulently use an established company’s name, logo and even the details of real employees working in human resource departments to post jobs on recruiting websites or other social media platforms.

Keeping their credentials almost identical to the official company’s details, they send emails to job-seekers or post fake jobs. As soon as interested candidates apply, they conduct interviews to get sensitive information about candidates through telephonic or on-site interviews.

Through fake interviews and telephonic/email conversations, criminals ask for sensitive personal information, particularly social security, ID number and bank account details that job seekers often provide, paving the way for identity fraud.

In some cases, the scammers even seek money from the candidates in the name of background checks or certifications which directly cost them financial losses. In the US alone, users lost $86 million due to fake job opportunities posted on the internet.

Spotting the Signs of Recruitment Fraud

Recruitment fraud is the most unfortunate part of modern job hunting, where criminals prey upon candidates’ eagerness to find work for their living by creating scam job opportunities.

Here are a few signs that can help job seekers spot fraudulent elements during the recruitment process:

Legitimate hiring managers and employers never ask applicants to make any financial transaction in their personal or company account. Always say No to any person who is asking you to send money for any recruitment purpose.

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The majority of companies recruit their employees using their official email accounts; rather than contacting the person through common numbers or email addresses. Any job letter/offer from any such account could be a fake one.

Legitimate recruiters always follow a comprehensive plan to get all the relevant information about the candidate. Any person offering you a job without following a standard hiring process raises suspicions.
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How Shufti Pro can Help

With transforming technologies, the overall market is growing to produce more job opportunities for interested candidates. As per the surveys, this number is expected to grow in the coming years, increasing recruitment fraud risks.

Through talent acquisition scams, criminals not only defraud job seekers but also damage the reputation of established companies. So it is in their higher interest to find and implement a credible solution that efficiently mitigates the risks of stolen identity or credentials.

Shufti Pro’s identity verification services present an ideal option to counter this problem through its advanced identification features, including document authentication, facial recognition and address verification.

Want to learn more about identity verification services for eliminating recruitment fraud?

Connect with a KYC Expert

Crypto firms Halt Business in China After an Intense Government Crackdown

How Much Have Australians Lost to Scams?

How do Online Recruiting Scams Work?

Spotting the Signs of Recruitment Fraud

High Profile Criminal Cases of Recruitment Fraud

1. Europol Arrested a Gang Involved in €20 Million Employment Fraud

2. Hampton Gang Member Convicted for Pandemic Employment Fraud

Talent Acquisition Fraud and the Role of Law Enforcement Authorities

1. FBI Issued Instructions to Avoid Employment Scam

2. UK Government – Raising Awareness of Employment Scams

How Shufti Pro can Help

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