China is in the process of updating its legislation to combat cryptocurrency laundering. The Chinese Congress will introduce additional requirements to monitor new money laundering risks associated with the technology in the second revision of its anti-money laundering law.
Innovations in the Draft Law
The revision under consideration redefines the crime of money laundering and adds seven precedent offences to the law, linking illegal operations to complex criminal activity and organised crime.
Compliance with International Standards
These changes aim to bring China’s regulations in line with international standards and for Chinese authorities to increase pressure on criminals who use these tools in their money laundering activities.
Technological Developments and Challenges
Wang Xiang, spokesman for the Legislative Affairs Commission of the Standing Committee of the National People’s Congress, said technological advances have made it harder to track money laundering activities.
The rapid development of new technologies and business forms has increased the difficulty of detecting and investigating money laundering activities.
The new revision will include provisions that would allow the central bank to issue specific guidance to other institutions and monitor those risks, a move that is in line with steps taken by China’s state agencies to address cryptocurrency laundering risks.
Last month, China’s highest court, the Supreme People’s Court, and the Supreme People’s Procuratorate issued a joint document listing cryptocurrency transactions among tools used to conceal the source of criminal proceeds.
Impact of Regulations
China is against the use of cryptocurrencies as legal tender and has banned their circulation in national markets. These new regulations are seen as an important step towards preventing cryptocurrencies from being used in illegal activities.
In conclusion, China’s new anti-money laundering legislation aims to respond to the challenges brought about by technological advances and ensure compliance with international standards. These steps have the potential to increase the effectiveness of regulating cryptocurrency use and combating crime.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
