China's Supreme Court Revises Anti-Money Laundering Laws to Include Virtual Assets
The Chinese Supreme People's Procuratorate, equivalent to the Supreme Court, has revised its interpretation of local anti-money laundering laws to include virtual asset transactions for the first time. In other words, cryptocurrencies are now in Beijing's crosshairs, which is not good news for enthusiasts of these currencies.
The Chinese authorities now consider money laundering of amounts exceeding 5 million yuan (2.138 million dinars) or losses exceeding 2.5 million yuan (1.069 million dinars) as serious offenses under the law.
From now on, these operations will be subject to penalties ranging from 10,000 yuan (4,276 dinars) to 200,000 yuan (85,523 dinars) for the most serious offenses. Offenders may also be sentenced to imprisonment for five to ten years. Refusal to cooperate with the authorities will cost 5 million yuan (2.138 million dinars).
This is the first major revision since the law was promulgated in 2007. It confirms rumors that have been circulating for months about a potential ban on this class of assets in the country. Moreover, for those who are unaware, bitcoin is already banned in the country.
The authorities have effectively observed that the transfer and conversion of criminal activity revenues have multiplied in recent years, thanks to these digital transactions that allow for the concealment of such practices.
The global noose is tightening around these currencies, with governments around the world trying to create a space for central bank digital currencies.
