China Citizens Continue Defying Law Prohibiting Crypto Transactions

China’s Supreme Court and the Supreme People’s Procuratorate (SPP) have jointly released the latest judicial interpretation involving money laundering. In the “Explanation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Money Laundering,” both government authorities agreed that virtual assets are among the ways local users transport laundered money.

The duo also confirmed that the number of money laundering cases in the country has significantly soared compared to previous years.

Crypto Being Used to Launder Money

In the press conference, the Supreme Court and SPP revealed that 2,971 individuals faced prosecution for money laundering crimes in 2023. This figure is 20 times larger than those charged for the same offense in 2019. In the first six months of this year, 1,391 people were prosecuted for money laundering, signaling a 28.4% increase year-on-year (YoY).

While tightening anti-money laundering (AML) laws, the country’s law authorities prescribed various acts that could be categorized under money laundering.

By referencing virtual assets in the document, the Chinese government indicates that cryptocurrencies have been used to launder money. This continuous use of crypto shows that local residents have not ceased to adopt the digital asset market despite an outright ban from the government.

The act is not entirely surprising since a recent CoinTab report confirmed that a Chinese gang stole $2 million worth of crypto assets from a family. The criminal squad has since been on the run as local police chase after them.

China’s Stance on Crypto

The Chinese government has implemented a crypto ban since 2017. Before then, the Asian country was recognized as the nation with the largest Bitcoin trading volume. In 2021, the government tightened the ban by restricting crypto trading activities and mining operations.

The latest report shows that the Chinese authorities’ regulatory clampdown has not stopped residents from accessing crypto assets.

In an August 18 tweet, Tron founder Justin Sun teased that China might soon lift its ban. Still, there is no evidence from the government backing such a claim.