China Extends Anti-Money Laundering Law to Cryptocurrency Transactions

China Extends Anti-Money Laundering Law to Cryptocurrency Transactions

China's highest judicial authorities have expanded the scope of the country's Anti-Money Laundering (AML) law to include cryptocurrency transactions. The move underscores China's continued efforts to regulate and oversee the cryptocurrency sector within its borders. The revised interpretation of the AML law, issued jointly by the Supreme People's Court and the Supreme People's Procuratorate, explicitly includes cryptocurrency transactions as a method of money laundering. This means that individuals and entities engaging in suspicious cryptocurrency transactions could face legal consequences under the AML law. The inclusion of cryptocurrency transactions within the AML law is a significant development, as it brings these transactions under the purview of the law for the first time. Previously, the AML law did not explicitly address cryptocurrency transactions, leaving some uncertainty about their legal status. The revised AML law is expected to have a significant impact on the cryptocurrency industry in China. It will likely increase scrutiny of cryptocurrency transactions and could lead to increased enforcement actions against individuals and entities involved in money laundering activities using cryptocurrency.