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.”
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Cryptocurrency exchange Bybit is giving Chinese citizens living outside of China access to its products and services, according to a report by the South China Morning Post—provided they reside in a jurisdiction the company still serves. The policy shift comes after the Dubai-based cryptocurrency exchange updated its Service Restricted Countries section of the exchange’s Terms of Service on Friday. Chinese citizens living outside of mainland China will be able to sign up using their Chinese ID or...
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.
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Tron founder Justin Sun has urged China to reassess its position on Bitcoin, following former President Donald Trump's endorsement of the digital currency and plans to make the U.S. the world crypto capital. Trump pledged to create a “strategic Bitcoin stockpile” for the U.S. during his keynote address at the Bitcoin 2024 conference in Nashville on Saturday. "As the final part of my plan today, I am announcing that if I am elected, it will be the policy of my administration, the United States o...
The move comes after the country’s bans on ICOs in 2017 and crypto transactions in 2021, noting China's fluctuating approach to crypto.
Speaking at a campaign event at Precision Components Group on Monday in York, Pa., former President Donald Trump stressed the importance of the U.S. remaining ahead of Chinese technological advancements.
“To power our country into the future, including the growing electricity demands of AI and cryptocurrencies— which is a very big subject coming up more and more— we have to stay at the top, we wanna be right at the forefront,” Trump said. “Otherwise China and other countries will take it over.”
Edited by Sebastian Sinclair
