China’s top regulatory bodies have recently intensified their efforts to combat money laundering by identifying cryptocurrency transactions as a method of money laundering under the Criminal Code. This significant development was announced during a press conference jointly held by the Supreme People’s Court of China and the Supreme People’s Procuratorate of China, where they introduced the “Commentary on Various Issues Regarding the Application of the Law in Handling Money Laundering Crime Cases.” Scheduled to go into effect on August 20, 2024, this commentary consists of 13 articles aimed at strengthening anti-money laundering measures.
In the first half of 2024, China saw a notable increase in the number of people being prosecuted for money laundering, with 1,391 individuals facing charges, marking a 28.4% rise compared to the previous year.
One key highlight of the commentary is its recognition of virtual asset transactions as a form of money laundering. The document specifically calls out transactions involving digital currencies and financial asset exchanges as methods used to disguise the origins of illicit funds. Despite the existing bans on the use and mining of cryptocurrencies in China, the country continues to be a significant player in the global cryptocurrency mining landscape.
It is crucial for individuals and entities operating within the crypto industry to stay informed about regulatory changes and compliance requirements to mitigate risks and uphold integrity in the space. As always, it is important to exercise caution and seek professional advice when navigating the complexities of the cryptocurrency market.
