🇨🇳 CHINA MAY TREAT CRYPTO MIXERS AS MONEY LAUNDERING RED FLAGS
Senior Chinese legal scholars and prosecutors are calling for a sweeping overhaul of how the country investigates and prosecutes cryptocurrency-related money laundering, arguing that Bitcoin, stablecoins, mixers, privacy coins, and decentralized exchanges have outpaced existing laws.
The proposal highlights three major weaknesses in China’s current framework: difficulty charging offenders under existing statutes, challenges collecting and authenticating blockchain evidence, and obstacles recovering crypto assets moved across borders.
Among the recommendations are expanding money laundering investigations, requiring blockchain forensic analysis in criminal cases, recognizing on-chain data as admissible evidence, allowing courts to infer criminal intent from the use of mixers, privacy coins, and anonymous wallets, and giving investigators broader authority to conduct blockchain surveillance and technical investigations.
The paper also calls for a national platform to seize, custody, value, and liquidate confiscated crypto assets, along with stronger international cooperation to trace, freeze, and recover digital assets transferred overseas.
