Stablecoin

Impact

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/china-considers-crypto-money-laundering" data-wpel-link="internal" rel="noopener noreferrer nofollow">China Considers Crypto Money Laundering</a><br></p>
<p style="text-align: justify">China’s highest judicial bodies have declared the usage of cryptocurrencies to conceal illegal funds as an act of money laundering. This recent move is aimed at improving the investigation and prosecution of money laundering cases associated with cryptocurrencies.</p>
<h2 id="what-is-the-impact-of-china-s-new-judicial-interpretation">What Is the Impact of China’s New Judicial Interpretation?</h2>
<p style="text-align: justify">The Supreme People’s Court and the Supreme People’s Procuratorate of China issued a judicial interpretation on Monday. The interpretation explicitly states that cryptocurrency transactions can be considered a method of money laundering. It emphasizes that converting or transferring proceeds from criminal activities through crypto transactions can be seen as “concealing or disguising the source and nature of criminal proceeds” according to Chinese criminal law.</p>
<p style="text-align: justify">However, this interpretation does not automatically criminalize all cryptocurrency trading. Liu Honglin, founder of the Shanghai law firm Man Kun, clarified on social media that individuals are not criminalized merely for holding or trading cryptocurrencies within China. The interpretation is primarily aimed at providing a clearer legal basis for law enforcement against specific illegal activities.</p>
<h2 id="challenges-for-stablecoin-traders">Challenges for Stablecoin Traders</h2>
<p style="text-align: justify">Shao Shiwei, a fintech lawyer based in Shanghai, highlighted that the new interpretation could pose increased difficulties for stablecoin traders. According to Shiwei, those who receive illegal funds via cryptocurrency trading may face more stringent legal consequences.</p>
<h2 id="key-takeaways-for-crypto-users">Key Takeaways for Crypto Users</h2>
<p style="text-align: justify">– Individuals holding or trading cryptocurrencies in China are not criminalized by default.<br> – The judicial interpretation provides a clearer legal foundation for prosecuting illicit activities involving cryptocurrencies.<br> – Stablecoin traders may face tighter scrutiny and legal challenges.<br> – China’s capital control measures remain stringent, and using cryptocurrencies to evade these controls could lead to serious repercussions.</p>
<p style="text-align: justify">China has banned all cryptocurrency trading activities since September 2021, classifying services from overseas exchanges to Chinese residents as illegal. Despite this, many <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> have found ways to continue trading. Over the years, some individuals have used cryptocurrencies to circumvent capital control policies. For instance, Chinese police dismantled an underground bank in May that had conducted transactions worth 13.8 billion yuan using stablecoins pegged to the US dollar.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/china-considers-crypto-money-laundering" data-wpel-link="internal" rel="noopener noreferrer nofollow">China Considers Crypto Money Laundering</a></h5>

China Considers Crypto Money Laundering

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