ChineseThe country’s top judicial authorities have classified the use of cryptocurrencies to conceal illicit funds as a form of money laundering. This latest move regarding cryptocurrencies in China aims to facilitate the investigation and prosecution of cryptocurrency-related money laundering cases.
What Does the Chinese Judiciary’s New Cryptocurrency Comment Actually Mean?
Judicial commentary China Supreme People’s Court And Supreme People’s Procuratorate It was published by on Monday. The commentary stated that cryptocurrency trading is considered one of the methods of money laundering. It was stated that the use of cryptocurrency transactions or financial asset exchanges, especially for the purpose of transferring or converting proceeds of crime, can be recognized as an act defined in the country’s criminal code as “concealing or masking the source and nature of criminal proceeds.” A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
However, this new judicial interpretation in China does not mean that cryptocurrency trading will automatically be considered money laundering. Shanghai-based Man Kun Founder of the law firm Liu Honglin“This judicial interpretation does not make it a crime for individuals to hold or trade cryptocurrencies in mainland China,” Liu said in a post on social media. Liu emphasized that the main purpose of this interpretation is to provide law enforcement with clearer legal grounds in criminal cases targeting specific illegal activities.
On the other hand, a fintech lawyer based in Shanghai Shao Shiweinoted that the new judicial interpretation could make it harder for stablecoin traders to operate. Individuals who receive illicit funds through cryptocurrency trading could face greater legal sanctions, according to Shiwei.
China’s Tight Controls on Cryptocurrency Trading
As you may recall, China banned all cryptocurrency trading activities in a statement published in September 2021. The ban, mainland chinafor those living abroad cryptocurrency exchangesThe services offered by the company were also described as illegal financial activities, but many investors found ways around these rules and continued to trade.
Over the years, China has implemented strict capital control policies, and some people have used cryptocurrencies to circumvent these policies. In May, Chinese police US dollarsIt took down an underground bank that was exchanging at least 13.8 billion yuan ($1.9 billion) worth of foreign currency using a stablecoin pegged to the cryptocurrency.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
