As a seasoned analyst with extensive experience in tracking global financial trends, I find China’s latest move to recognize crypto transactions as part of its anti-money laundering laws to be a prudent and necessary step. My years spent navigating the complex world of finance have taught me that such measures are essential for maintaining the integrity of any financial system, especially one as dynamic as the digital asset market.
For the very first time, China’s Supreme Court and Public Prosecution Office have acknowledged cryptocurrency transactions under their updated interpretation of the nation’s Anti-Money Laundering regulations.
On August 19th, officials from both the Supreme People’s Court and the Supreme People’s Procuratorate unveiled changes to China’s Anti-Money Laundering (AML) regulations during a joint press conference. These modifications will become law on August 20th.
As stated in the announcement, one significant aspect of the new interpretations is that virtual asset transactions are now recognized as a way to launder money. Following this, Chinese authorities view the conversion and transfer of ill-gotten gains through cryptocurrency as hiding the origin and nature of such proceeds and their benefits, achieved “through other means.”
Individuals who are found guilty will encounter a variety of penalties, such as fines that range from approximately 10,000 Chinese yuan ($1,400 USD) to 200,000 Chinese yuan ($28,000 USD). For more serious offenses, there is also the possibility of imprisonment for a period between five and ten years.
The changes to the Anti-Money Laundering (AML) regulations encompass 13 articles, aiming to offer clear guidance on recognizing money laundering offenses and the scenarios under which certain restrictions against hiding or masking profits from illicit activities could be enforced. Furthermore, these amendments specify penalties such as fines and imprisonment for violating AML laws.
1. The amendments represent the final step following calls earlier this year by Chinese Prime Minister Li Qiang for revising the country’s Anti-Money Laundering (AML) regulations to encompass cryptocurrency transactions. Furthermore, officials in the nation have pledged to penalize those who use crypto and blockchain technology to perpetrate crimes. The People’s Procuratorate asserts that illicit wealth is being concealed through crypto-related money laundering activities, making it a significant avenue for criminal activities.
Earlier this year, according to crypto.news, there’s been a rise in illegal activities linked to cryptocurrencies in China. This issue was notably discussed during the Chinese Association for the Study of Integrity and Law’s annual meeting towards the end of 2023.
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2024-08-20 12:20