Chinese Networks Account for Significant Crypto Laundering in 2025

Chainalysis’ 2026 Crypto Crime Report reveals that in 2025, Chinese-language money laundering networks processed about $16.1 billion in illicit cryptocurrency funds, primarily via Telegram-based services in China.

This highlights the persistent challenge of illicit cryptocurrency activities, emphasizing the need for increased regulation and more effective monitoring solutions to combat these sophisticated networks.

Key Points:

The financial implications are substantial, with a daily average of $44 million laundered, contributing to 20% of the global laundering money flow in cryptocurrency. Such activity drastically shifts the market focus towards increased regulatory scrutiny and potential legal action against illicit networks. The emphasis remains on international collaboration for effective mitigation.

Market and regulatory reactions are cautious, as official responses from regulatory bodies were absent at the time of reporting, yet enforcement actions continue, as seen in the UK with recent convictions related to less publicized laundering cases. Detective Sergeant Isabella Grotto, Lead Investigating Officer, Metropolitan Police, said, “By working closely with partners in the UK and overseas, with support from Chainalysis, we were able to trace the movement of the cryptocurrency, identify assets linked to the offending, and ultimately recover more than 61,000 bitcoin.” Partnerships with firms like Chainalysis assist in crypto tracking and law enforcement.

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Market and regulatory reactions are cautious, as official responses from regulatory bodies were absent at the time of reporting, yet enforcement actions continue, as seen in the UK with recent convictions related to less publicized laundering cases.

Potential Regulatory Crackdown as Laundering Grows

Did you know? Chainalysis has traced historical laundering activities back to 2020, noting a growth rate far exceeding centralized exchanges, highlighting the urgency in addressing these networks.

Bitcoin (BTC) trades at $88,408.22, with a market cap of $1.77 trillion, according to CoinMarketCap. Bitcoin’s 24-hour trading volume hit $32.66 billion, a 39.73% decrease. Over the last 24 hours, BTC rose by 1.21%, but experienced a 20.61% decline over 90 days.

Insights from Coincu research suggest that the prevalence of illicit networks could prompt amplified regulatory interventions, possibly affecting cryptocurrency flow and market stability. The usage of stablecoins for clandestine transactions may see scrutiny, with potential impacts on global financial ecosystems if left unchecked. China Virtual Currency Regulation Governance, Dismantling Cryptomixer Laundering Exposed, and China Enhances Crypto Regulations 2025 discuss related challenges and regulatory aspects.