The UK Foreign, Commonwealth & Development Office (FCDO) has announced sweeping sanctions against Xinbi, a Chinese-language cryptocurrency marketplace estimated to have processed nearly $20 billion in transactions, citing its role in facilitating scams and illicit financial activity. The agency stated that Xinbi provides crypto-based services, scam-enabling tools and other illegal services to bad actors. It also described the platform as playing a central role in scam centers operating across Southeast Asia. The sanctions are designed to cut the platform off from the broader cryptocurrency ecosystem.
Under the measures, any UK assets connected to Xinbi will be frozen, and the platform will be barred from the country’s financial, trade and travel networks. UK-based institutions, including banks, crypto firms and individual citizens, are prohibited from providing goods, services, loans or investments to the platform. The FCDO said the sanctions will significantly disrupt Xinbi’s ability to send and receive cryptocurrency transactions. Notably, the government’s language drew a distinction between legitimate and illicit crypto ecosystems, rather than treating them as one.
Blockchain analytics firm Chainalysis estimates that Xinbi processed more than $19.9 billion between 2021 and 2025 and is deeply connected to a range of other illicit services. In a report published Thursday, Chainalysis described the sanctions as targeting the scam ecosystem’s on- and off-ramps that enable large-scale fraud. The firm noted that these operations are exploiting the efficient, borderless nature of crypto infrastructure. It added that by blacklisting a well-known Chinese-language guarantee marketplace, the FCDO is addressing commercial platforms that sustain scam operators through payment facilitation and marketing services.
The sanctions also name several individuals allegedly connected to Prince Group, a Cambodia-based company accused of orchestrating large-scale crypto fraud schemes. Thet Li was sanctioned for allegedly managing the international financial network of Prince Group. Hu Xiaowei, who is allegedly involved in the group’s financial network and linked to #8 Park, a scam compound associated with Prince Group, was also targeted. These individual designations reflect an effort to dismantle the broader organizational structure behind the illicit operations.
The action comes amid broader international efforts to combat crypto-related financial crime. The Financial Action Task Force estimates that between 2% and 5% of global GDP is laundered through traditional financial systems each year. By comparison, Chainalysis estimates that less than 1% of all cryptocurrency transactions are linked to illicit activity. This context underscores that financial crime is not unique to crypto, though the sector remains a focus of regulatory attention.
The United States has similarly stepped up enforcement actions in recent months. Earlier this month, the US Treasury Department sanctioned six individuals and two entities for their alleged involvement in an IT worker fraud scheme attributed to North Korea, a state actor that frequently targets the cryptocurrency industry. The parallel actions by the UK and US suggest a coordinated international approach to disrupting illicit use of digital assets. Both governments appear focused on preserving the integrity of legitimate crypto markets while targeting bad actors operating within them.
Originally reported by CoinTelegraph.
