- China updates AML laws to include virtual asset transactions as a recognized money laundering method.
- Revised guidelines target illicit activities, like money laundering, in virtual asset transactions.
- The Chinese Police detained six people in connection with a money-laundering case worth over 2 Billion yuan.
China is among the leading economies in the world that have prohibited entirely crypto-related activities in 2021. Before the restrictions, the region was one of the most favored by cryptocurrency miners.
Recently, China’s Supreme Court and public prosecutor revised their interpretation of the country’s AML laws, acknowledging virtual asset transactions for the first time.
The first anti-money laundering law in China was enacted on January 1, 2007; the recent amendment is the most significant in the past two decades. The “virtual asset” transactions are now listed as a recognized money laundering method, as per the information.
Its neighbor, Hong Kong, is constantly working to ease its crypto regulations. Data sources suggest that millions of Chinese residents still hold and trade digital assets.
The Need for AML Law Revisions
This amendment mirrors China’s focus on tackling the rising virtual asset market and emerging financial crimes. Additionally filling previous legal loopholes to ensure a more secure financial environment.
Consequently, this highlights China’s growing efforts to address the upsurge of the virtual asset market and new-age financial crimes.
Region’s revised guidelines aim to prevent the abuse of virtual assets for illicit financial activities, notably money laundering. By clarifying the definition of virtual asset transactions, the regulations seek to find and prevent the hiding of illegal proceeds.
The updated regulations imply that virtual asset transactions could be viewed as efforts to obscure the source of criminal proceeds.
The guidelines set standards for evaluating the severity of money laundering offenses, including transactions valued at over 5 M yuan or those that incur losses surpassing 2.5M yuan.
Recent Virtual Asset Related Cases
A regional media outlet reported on May 13, 2024, that the Chinese Police have imprisoned six people in connection with a money-laundering case involving the movement of 2.14 Billion yuan in crypto to South Korea.
“ The involved ones were detained by the Police in China’s northeastern Jilin province,” it further notes.
On May 24, 2024, Reuters wrote that a woman was charged with flipping Bitcoin into cash and property to help conceal the proceeds of a 5 Billion pound fraud.
Wen Jian was jailed for money laundering following the court proceedings. She helped hide the source of money allegedly stolen from nearly 130k Chinese investors in fraudulent wealth projects between 2014 and 2017.
In May 2024, Chinese officials cracked down on a severe illicit banking network involved in processing crypto transactions valued at over $1.6 Billion. The group charged was leveraging USDT to launder funds.
Furthermore, the authorities imprisoned over 190 individuals from 26 provinces, the network having tight ties with gold-smuggling processes in Nepal.
Crypto Market Price Update
In the past 24 hours, the cryptocurrency market capitalization grew 3.57%, reaching $2.15 Trillion. As per the available charts, a major pump in buying is observed compared to selling; trading volume grew more than 62%.
When writing, Bitcoin was trading at $60,879 with an intraday addition of 2.83%. The bullishness has lured both long-term and short-term traders, reflecting a constant buying trend in BTC.
The price of Bitcoin has surpassed the 20 & and 200-day EMA; however, the bulls are further eyeing breaking the mark of $62k to beat the 50-day EMA. BTC’s price lost control and broke the support of $60k on August 05, 2024, following a severe outflow.
