China Considers Revising Anti-Money Laundering Law to Address Risks of Cryptocurrencies

• Chinese lawmakers are considering revising anti-money laundering law to monitor money laundering risks through emerging financial technologies.
• The revisions aim to improve detection methods amid the rapid development of new technologies.
• The proposed provisions call for collaboration between the central bank and financial regulators to manage money laundering threats from nascent technologies.
• Financial institutions will be held accountable for assessing money laundering risks posed by novel business models arising from emerging tech.
• The Supreme People's Court in China has expanded the definition of money laundering channels to include virtual assets.
• China has a well-documented hostility toward cryptocurrencies and virtual assets, with previous crackdowns on exchanges and aggressive posturing toward crypto operations.

Summary :
Chinese lawmakers are considering revising an anti-money laundering law to better monitor and analyze money laundering risks associated with emerging financial technologies, including cryptocurrencies. The proposed revisions call for collaboration between the central bank, financial regulators, and financial institutions to manage the risks posed by money laundering threats from new technologies. The Supreme People's Court has also expanded the definition of money laundering channels to include virtual assets, stating that they can be used to conceal the source and nature of illegal proceeds. China has a history of hostility towards cryptocurrencies, with previous crackdowns on virtual asset exchanges and a renewed focus on discouraging and preventing the use of crypto.

Sources :

- CoinTelegraph