China Recognizes Virtual Asset Transactions in Revised AML Laws
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
China has revised its Anti-Money Laundering (AML) laws to include virtual asset transactions in the first major update to the country’s AML framework since its adoption on January 1, 2007.
On August 19, the Supreme People’s Court and the Supreme People’s Procuratorate announced that their new interpretation of the AML laws now officially recognizes virtual asset transactions as potential vehicles for money laundering.
The move comes amid China’s efforts to strengthen its regulatory framework in response to the growing use of digital currencies and other virtual assets.
The regulations now prohibit “covering up and concealing the source and nature of criminal proceeds and their benefits by other means,” thereby closing a significant loophole that had previously existed in the country’s AML efforts.
The penalties for those found guilty of using virtual assets for money laundering are severe.
Offenders can face fines ranging from a minimum of 10,000 Chinese yuan (approximately $1,400) to a maximum of 200,000 Chinese yuan (around $28,000), depending on the gravity of the offense.
In more serious cases, individuals could face prison sentences of five to ten years.
The revised AML laws also introduce clearer guidelines for what constitutes “serious circumstances” in money laundering cases.
These include situations where individuals refuse to cooperate with authorities or when the amount being laundered exceeds 5 million Chinese yuan (approximately $700,000).
These amendments underscore China’s commitment to cracking down on financial
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