Categories: Global Adoption

China Classifies Crypto Transactions as Money Laundering in Update to AML Law

On Monday, Chinese authorities explicitly recognized “virtual asset” transactions as a method of money laundering, marking the first instance in the country that such a move has been made towards the asset class. The Supreme People’s Court and the Supreme People’s Procuratorate, the country’s highest judicial bodies, jointly announced the changes during a press conference. 

The measures, expected to take effect on Tuesday, are part of broader efforts aimed at tightening anti-money laundering laws, including specifically targeting the use of crypto in illicit financial activities.

The new legal interpretation classifies virtual asset transactions, including those conducted through crypto exchanges, as acts that “cover up and conceal the source and nature of the proceeds of crime.” 

Chinese authorities will now consider laundering amounts over 5 million yuan ($685,000) or causing losses of more than 2.5 million yuan ( $343,000) as serious offenses under the law. The thresholds ensure that large-scale money laundering operations face stricter legal scrutiny and harsher penalties.

If convicted and sentenced to fixed-term imprisonment of up to five years, or if given criminal detention, individuals face a fine of no less than 10,000 yuan ($1,370).  For sentences ranging from five to ten years, the individual will be fined at least 200,000 yuan ($27,400) in addition to their imprisonment.

Terron Gold

Recent Posts

Senator Murphy Alleges White House Insiders Profited From Iran Strike Bets, Pushes to Ban Prediction Markets on Government Actions

U.S. Senator Chris Murphy (D-Conn.) is calling for legislation to ban prediction markets that allow traders to bet…

2 days ago

IRS Proposes Electronic-Only Delivery For Crypto Tax Forms Under New Reporting Rules

The U.S. Internal Revenue Service (IRS) has proposed a new rule that would allow cryptocy brokers to deliver…

2 days ago

Crypto-Friendly Fintech Revolut Files For U.S. Banking License to Expand Crypto and Payments Services

Global fintech powerhouse Revolut has filed an application for a U.S. banking license, a move that would allow…

2 days ago

Suspect Arrested on Caribbean Island of Saint Martin in $46M Seized Crypto Theft Case

A man accused of stealing tens of millions of dollars in cryptocy from U.S. government…

2 days ago

NYSE Parent ICE Invests in Crypto Exchange OKX at $25B Valuation Amid Tokenized Stocks Push

Intercontinental Exchange (ICE) — the parent company of the New York Stock Exchange — has taken a strategic…

2 days ago

AI Models Favor Bitcoin as a Store of Value, Stablecoins for Payments, BPI Study Finds

A new study from the Bitcoin Policy Institute (BPI) found that leading artificial intelligence models overwhelmingly favor Bitcoin…

2 days ago