China's Supreme People's Court and Procuratorate Address Money Laundering in Virtual Assets
China's Intensified Crackdown on Money Laundering
In a significant legal shift, China's Supreme People's Court and the Supreme People's Procuratorate have announced revisions to money laundering laws that directly target virtual assets, including cryptocurrencies, online game coins, and live streaming financial activities. This comprehensive amendment aims to curb the rising illicit use of digital currencies in financial malfeasance.
Scope of New Regulations
- The revisions define money laundering to encompass any transfer of criminal proceeds via virtual assets.
- Virtual currencies and game coins have emerged as popular mediums for laundering funds, prompting authorities to revise legal frameworks.
- Recent prosecutions, including those related to live streaming activities, highlight the urgency of enforcing these laws.
Recent Enforcement Actions and Statistics
In 2023, nearly 3,000 individuals were prosecuted for money laundering offenses, illustrating a drastic increase in enforcement actions compared to 2019. Notably:
- Four live streamers were charged for participating in an illegal fundraising scheme involving virtual rewards valued at 1.2 billion yuan.
- The illegal exchange of foreign currencies through an underground bank revealed systemic vulnerabilities related to virtual assets.
Implications for Financial Institutions
In light of the crackdown, China's central bank has mandated financial institutions to enhance monitoring and cease services linked to virtual currency transactions. The collaborative approach among various provinces aims to strengthen the overall legal framework against money laundering.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.