365Crypto
China Targets Crypto Money Laundering in Law Revision
China is updating its laws to tackle the growing issue of cryptocurrency-related money laundering. The National People’s Congress, the country’s top legislative body, is reviewing changes to the money laundering law, aiming to address risks posed by new technologies, including cryptocurrencies.
New Focus on Crypto-Related Crime
The draft revision introduces new measures to monitor tech-based money laundering activities, specifically targeting cryptocurrency transactions. It also adds seven predicate offenses, linking money laundering to organized crime and other complex illegal operations.
China has long opposed the use of cryptocurrency as legal tender, banning its circulation in national markets. This legal update aims to align the country’s regulations with international standards, increasing pressure on criminals using cryptocurrency for illicit purposes.
Tech Advancements Make Detection Harder
Wang Xiang, spokesman for the Legislative Affairs Commission, acknowledged that advancements in technology make it harder to detect and investigate money laundering activities. The law revision will also require the central bank to issue specific guidelines to help financial institutions monitor these risks more effectively.
A Coordinated Effort
This move follows recent steps by Chinese state institutions. Last month, the Supreme People’s Court and the Supreme People’s Procuratorate issued a joint statement identifying cryptocurrency transactions as tools used by criminals to hide the origins of illegal funds. These efforts aim to curb money laundering by tightening controls on the use of cryptocurrency in financial crimes.
