At the meeting, the Supreme People's Court and the Supreme People's Procuratorate of China announced that they would implement a new interpretation of the law to regulate virtual currency exchanges.
The current Money Laundering Prevention Act came into force on January 1, 2007, and this latest revision is the first major update in about 20 years.
According to the Court, the transfer and diversion of criminal proceeds through digital transactions is covered by the provisions prohibiting "the concealment or disguise by other means the origin and nature of criminal proceeds and their benefits."
Penalties for violators of the law range from a minimum fine of 10,000 formal (approximately 200,000 yen) to a maximum of 200,000 formal (approximately 4.1 million yen), and for serious crimes, five to ten years in prison.
According to the Supreme People's Procuratorate, the number of people prosecuted for money laundering in China has increased 20-fold since 2019.
The number of people indicted was 2,971, a 20-fold increase from 2019. Meanwhile, some have expressed concern over the ban on crypto assets after China's law recognized virtual currency transactions as a method of money laundering.
There has been speculation that the government may lift the ban on travel to the US, but many experts are skeptical.
Last July, Reddate Technology, a major Chinese blockchain company,
Yifan He, CEO of Bitcoin-Digital Technology, said, "There is a possibility that China will allow its citizens to freely trade bitcoin using their local currency."
"There's no chance," said Mikko Ikeda, co-founder of algorithmic investing protocol Trading Strategy.
Ohtamaa argued that China's reversal of its stance on crypto assets is in direct contradiction to the government's political stance.
China banned cryptocurrency exchanges in 2017 and is set to impose a regulatory ban on cryptocurrencies in 2021.
strengthened controls between
2024/08/20 16:55 KST
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