China’s top regulatory bodies have taken a major step in toughening anti-money laundering regulations, explicitly listing “cryptocurrency” transactions as a method of money laundering under the Criminal Code.
The Supreme People’s Court of China and the Supreme People’s Procuratorate of China jointly held a press conference to announce the new measures and issued the “Commentary on Various Issues Regarding the Application of the Law in Handling Money Laundering Crime Cases.” This commentary, consisting of a total of 13 articles, will enter into force on August 20, 2024.
In the first half of 2024, 1,391 people were prosecuted for money laundering in China, a 28.4% increase from the previous year.
The most striking aspect of the commentary is the inclusion of virtual asset transactions as a recognized method of money laundering. The document states that transactions involving digital currencies and financial asset exchanges can be identified as tactics to conceal the origin of criminal proceeds.
China currently bans the use and mining of cryptocurrencies, but the country remains among the leaders in cryptocurrency mining.
*This is not investment advice.
