China’s top court and its prosecutor’s office have for the first time recognized crypto transactions in their revised interpretation of the country’s anti-money laundering laws.
At a joint press conference on August 19, representatives from the Supreme People’s Court and the Supreme People’s Procuratorate announced several reinterpretations of China’s anti-money laundering laws, which are set to take effect on August 20.
According to the announcement, one of the highlights of the new interpretation is the inclusion of virtual asset transactions in the list of money laundering methods. According to Chinese authorities, the conversion and transfer of criminal proceeds through cryptocurrencies will now be considered as concealing the source and nature of criminal proceeds and their profits “by other means.”
Those found guilty will face a range of penalties, including fines ranging from 10,000 Chinese yuan (about $1,400) to 200,000 Chinese yuan (about $28,000 at the current exchange rate). In addition, the most serious offenders also face prison sentences of five to 10 years.
The amendments to the anti-money laundering laws cover 13 articles and aim to clarify the identification of money laundering offences and the specific circumstances in which certain regulations prohibiting the “concealment and concealment” of proceeds of criminal activity may come into force. In addition, the amendments set out the amount of fines and prison sentences that will be imposed on violators of the anti-money laundering laws.
The amendments are a result of calls earlier this year by Chinese Premier Li Qiang for the country to rewrite its anti-money laundering laws to include cryptocurrency-related transactions. In addition, the country’s authorities have vowed to punish those using crypto and blockchain technologies to commit crimes, with the People’s Procuratorate saying that cryptocurrency-related money laundering has become a major channel for criminals to hide their illicit wealth.
As crypto.news reported earlier this year, China has seen a rise in crypto-related criminal activity, with the trend even becoming a major topic at the annual conference of the China Association for the Study of Integrity and Law in late 2023.
