According to the latest developments, China is tightening its grip on crypto. The Supreme People’s Court and the Supreme People’s Procuratorate have expanded the definition of money laundering to include cryptocurrencies, online game coins, and even tips received during live streaming events.
The new regulations, set to take effect immediately, mark Beijing’s first major legislative effort to directly address the use of virtual assets in criminal activities.
Under these revised laws, the transfer and conversion of illicit proceeds through virtual asset transactions and financial asset exchanges will now be subject to anti-money laundering regulations.
China’s new crypto rule comes amidst growing criminal use
This legal update comes in response to the growing trend of criminals using online platforms for money laundering through virtual rewards in live streaming and gaming.
In a high-profile case earlier this year, authorities in Shanghai charged four live streamers with money laundering. This was after they exchanged virtual gifts that were part of an illegal fundraising scheme worth 1.2 billion yuan ($168 million).
The crackdown on virtual asset-based crimes has been intensifying in recent years. Prosecutions for money laundering have seen a dramatic increase, with 2,971 people prosecuted in 2023 – a nearly twentyfold increase from 2019. The first half of 2024 alone saw 1,391 prosecutions, marking a 28.4% year-on-year increase.
These new regulations also introduce clearer guidelines for what constitutes “serious circumstances” in money-laundering cases.
Offenders could face between five and ten years in prison and hefty fines of at least 200,000 yuan ($28,000) for cases involving amounts over 5 million yuan or for refusing to cooperate with authorities.
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Source: https://www.cryptonewsz.com/china-tightens-grip-crypto-games-aml-lockdown/