Crypto Revival Hopes Doubted: China Strengthens Anti-Money Laundering Measures

Even as whispers of a potential easing of China’s cryptocurrency ban circulate, Beijing appears to be doubling down on its efforts to combat money laundering, with a particular focus on the risks posed by crypto assets.

Beijing Doubles Down on Anti-Money Laundering Efforts

Lawmakers are currently reviewing a draft amendment to the Anti-Money Laundering Law aimed at strengthening the nation’s ability to detect and prosecute financial crimes in the rapidly evolving digital landscape, Hong Kong’s SCMP reported Tuesday.

A draft amendment to the Anti-Money Laundering Law, currently undergoing review by China’s top lawmakers, aims to strengthen the country’s ability to detect and prosecute financial crimes in the digital age. The revision, which includes a broader definition of money laundering and new requirements for monitoring digital transactions, underscores Beijing’s determination to stay ahead of criminals exploiting cryptocurrencies for illicit activities.

Proposed Amendments Tighten the Noose on Crypto-Related Financial Crimes

This move came amid the growing international pressure on China to align its financial practices with global standards. While recent signals from Chinese officials have hinted at a possible shift in cryptocurrency policy, the proposed amendments suggest that even if the ban is lifted, authorities will remain vigilant against potential misuse.

This focus on cryptocurrency is not unexpected. On August 19, the Supreme People’s Court and the Supreme People’s Procuratorate explicitly identified “virtual asset” transactions as a recognized method of money laundering, subjecting them to regulations that prohibit concealing the source and nature of criminal proceeds. Penalties for violations range from fines of 10,000 yuan ($1,400) to 200,000 yuan ($28,000) and potential jail terms of five to ten years.

Speculation of Crypto Ban Reversal Persists

Despite the tightening of anti-money laundering measures, speculation about a potential reversal of China’s crypto ban persists. Industry figures like Mike Novogratz and Justin Sun reacted to a possible easing of restrictions. However, others, including Yifan He, CEO of Red Date Technology, remain skeptical.

China’s Crypto Stance

China’s efforts to balance its pursuit of technological innovation with its commitment to financial stability highlight the complex challenges faced by policymakers as they navigate the rapidly evolving landscape of digital currencies. While the country’s stance on cryptocurrencies remains uncertain, its determination to combat money laundering is clear.

China has had a complex relationship with cryptocurrencies over the years. The country implemented a ban on crypto exchanges in 2017, signaling a significant shift in its stance towards digital currencies. However, despite this ban, interest in cryptocurrencies continued to grow within China. In 2021, the Chinese government launched an interdepartmental crackdown on crypto-related activities, further tightening its grip on the industry. These actions have created a challenging environment for crypto enthusiasts and businesses operating within China.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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