China Recognizes Virtual Asset Transactions as Money Laundering

• China's Supreme Court and public prosecutor have revised their interpretation of Anti-Money Laundering laws.
• "Virtual asset" transactions are now recognized as a money laundering method.
• Penalties for lawbreakers include fines and jail terms.
• 2,971 people were prosecuted for money laundering in China last year.
• Speculation on China potentially reversing its crypto ban.
• Qingdao police crack down on a $1.1 million USDT money laundering operation.

Summary :
China's Supreme Court and public prosecutor have revised their interpretation of the country's Anti-Money Laundering (AML) laws, now recognizing "virtual asset" transactions as a form of money laundering. This marks the first significant update to the Anti-Money Laundering Law since its adoption in 2007. The new interpretation includes regulations that prohibit the transfer and conversion of criminal proceeds through digital transactions. Penalties for offenders range from fines to jail terms of up to ten years. Last year, 2,971 people were prosecuted for money laundering in China, a significant increase from the previous year. There has been speculation about China potentially reversing its crypto ban, with some industry executives suggesting it could happen by late 2024. However, experts have expressed skepticism, stating that it would contradict the government's political agenda. In a separate case, Qingdao police are prosecuting a money laundering network that allegedly used stablecoin Tether (USDT) to launder over $1.1 million for criminal enterprises. Nine individuals are currently awaiting prosecution in connection with the case.

Sources :

- CoinTelegraph