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China is set to make a major amendment to its Anti-Money Laundering (AML) regulations to include cryptocurrency-related transactions amid calls for greater scrutiny of the nascent crypto industry by policymakers in the country.
<a href="https://www.jiemian.com/article/10753197.html" target="_blank" rel="noopener nofollow">According</a> to local media, Prime Minister Li Qiang chaired an executive meeting of the State Council on Jan. 22 to discuss the revised AML law. The first revised draft of the country’s AML regulations was proposed in 2021, with the revised draft included in the legislative work plan of the State Council in 2023 and will be signed into law by 2025.
This will be the first significant revision to China’s AML regulations since 2007.
Prominent scholars and financial experts who participated in the discussions on the revised draft of the AML regulations said that the AML law involves a relatively broad scope, making it difficult for the draft to be comprehensive. The most urgent content can only be reflected in a framework first.
Wang Xin, a professor at Peking University Law School who participated in the discussion, stressed the urgent need for resolving issues around crypto money laundering at the legal level. Xin added that the use of cryptocurrency and digital assets for money laundering has gradually become a mainstream trend, and current Chinese laws lack a clear definition of digital assets.
Related: <a href="https://cointelegraph.com/news/china-pboc-crypto-defi-stability-report">Chinese central bank urges the world to jointly regulate crypto</a>
The professor noted that although the revised draft includes the prevention of digital asset money laundering, there is a lack of operational guidance on the subsequent seizure, freezing, deduction and confiscation of the assets from money laundering crimes, resulting in a “disconnect.” He added that there is still room for improvement to combat digital asset-related money laundering.
China imposed a blanket ban on cryptocurrency use in 2021, prohibiting off-shore exchanges from offering services and banning all forms of mining. However, with technological advancements and the decentralized nature of cryptocurrencies, mainland users have found <a href="https://cointelegraph.com/news/crypto-trading-platforms-part-of-illegal-chinese-forex-ring-report">ways to access the crypto market</a>, leading to money laundering risks. The new amended regulations aim to impose stricter guidelines to curb such activities.
Magazine: <a href="https://cointelegraph.com/magazine/real-reason-chinas-war-on-crypto-3ac-judges-embarrassing-mistake-asia-express/">Real reason for China’s war on crypto, 3AC judge’s embarrassing mistake: Asia Express</a>

China to introduce revised crypto AML regulations by 2025

Cointelegraph

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