China’s supreme court has updated its interpretation of the nation’s Anti-Money Laundering (AML) laws in order recognize “virtual asset” transfers for the first time ever.
China passed its AML law on January 1, 2007, making the most recent update its first major one in 20 years.
During a recent conference, the Supreme People’s Court and the Supreme People’s Procuratorate stated that under their latest interpretation of the law, “virtual asset” transfers are listed as one of the recognized money laundering techniques.
This update has been revealed when there is speculation on social media that the nation might be considering allowing crypto transactions — but many are doubtful this will happen.
China’s AML rules have been updated by its supreme court and public prosecutor, according to local sources.
As per the courts, the transfer and conversion of illicit funds via digital transactions will be covered as part of new guidelines that do not allow for the covering up and concealing the “source and nature of criminal proceeds and their benefits by other means.”
There are penalties including a 10,000 Chinese RMB to 200,000 RMB fine for such offenses. People might also face jail terms of up to 10 years.
The other modifications include improved laws focused on dealing with “serious circumstances” in money laundering incidents, like not wanting to cooperate with officials or if the funds being laundered is over 5 million RMB.
The Supreme People’s Procuratorate stated that nearly 3000 individuals have now been prosecuted for money laundering since last year.
This news comes amid chatter on social media that China may be considering lifting its ban on crypto.
With the increased global adoption of crypto, there are many Chinese citizens who may be transacting with Bitcoin and using various exchanges through VPNs. The firewall in China prevents people from accessing major Western websites, but most use VPNs to bypass these restrictions. In the future, more people will likely use Bitcoin and other cryptos for illegal and legal transactions so the government should support innovation in a responsible manner.
