Originally published on: September 14, 2024
Chinese lawmakers are looking to revamp existing anti-money laundering legislation to better monitor and assess the risks of money laundering associated with new financial technologies, including cryptocurrencies.
In a recent announcement by Legislative Affairs Commission spokesperson Wang Xiang, it was revealed that the proposed revisions aim to improve detection methods in light of the rapid advancements in technology. The new legal provisions will require collaboration between the central bank, financial regulators, and financial institutions to effectively manage and mitigate money laundering risks stemming from emerging business models enabled by new technologies.
This move follows a statement by the Supreme People’s Court declaring virtual assets as potential tools for money laundering and tax evasion. The court ruled that severe penalties would be imposed on individuals involved in large-scale money laundering schemes using cryptocurrencies.
China has been known for its tough stance on digital assets, with strict regulations imposed on virtual asset exchanges in the past. The crackdown on foreign exchanges operating in the country led to a significant drop in Bitcoin prices.
More recently, the Chinese government has intensified its efforts to crack down on cryptocurrency operations within its borders. Through coordinated efforts between various government departments, including the People’s Bank of China and the Ministry of Public Security, China is actively working to discourage and prevent the use of cryptocurrencies in the country.
Discover how Chinese traders and miners are navigating China’s crypto ban in our latest magazine feature.
