The Public Prosecutor and the Supreme Court of China have issued Terms updated The country’s anti-money laundering legislation is set to include recognition of crypto transactions for the first time.
The change takes effect immediately, and the main goal is to put efforts into trying to curb the Growing use of cryptocurrencies In illicit activities. The new regulations come as a result of years of strict bans on cryptocurrencies in China, signaling a potential shake-up of the regulatory landscape.
Historic shift in regulations
The amended anti-money laundering laws represent the first major change since the law was passed in 2007. Subsequently, 13 articles were added to the law in order to explicitly clarify the legal regime for money laundering related to virtual assets.
Under the new law, individuals convicted of using cryptocurrencies to hide the source of criminal proceeds face fines ranging from 10,000 to 200,000 yuan ($1,400 to $28,000) and five to 10 years in prison. It’s a clear sign that while cryptocurrencies may have been mostly banned, the administration is recognizing their potential as a means of hiding the source of criminal proceeds. Financial crimes.
The changes were partly due to a rise in money laundering cases linked to cryptocurrencies. In 2023 alone, nearly 3,000 people were charged with money laundering, a significant increase from previous years. Authorities noted that cryptocurrencies are often used to hide the source of illicit funds, giving criminals a convenient and easy way to operate without detection.
Total crypto market cap at $2.09 trillion on the daily chart: TradingView.com
Cryptocurrencies: Speculations Surrounding Their Future
The timeframe for these measures and their modifications has raised much speculation about whether China might consider Re-authorization of cryptocurrencies. Representatives and analysts from all platforms are very interested to know the ultimate implications for the global cryptocurrency market due to this new regulatory policy.
China's supreme court and public prosecutor updated the country's AML legislation. Source: Supreme People's Procuratorate
Chinese authorities may be able to ease the ban, which would send markets soaring, likely sparking more interest in the crypto space. Additionally, the technological potential of blockchain could skyrocket as companies navigate the more professional environment of revised regulations.
On the other hand, the government is still actively trying to prevent illegal activities related to cryptocurrencies. The police have emphasized that Recognition of virtual assets In the context of combating money laundering, it does not mean legalizing the trading or mining of cryptocurrencies.
This practice is used as a means to limit the circulation of digital money between criminal networks. The government’s intent to enforce the law is clear, and some recent high-profile cases of money laundering via the internet, video games, or even live streaming agents are evidence of the authorities’ main goal.
Featured image from the Department of State, chart from TradingView
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