Alisa Davidson
Revealed: July 13, 2026 at 8:12 am Up to date: July 13, 2026 at 9:52 am
Edited and fact-checked:
July 13, 2026 at 8:12 am
In Temporary
China proposes new crypto AML framework with blockchain proof requirements, prison intent presumptions, and improved digital asset seizure administration.
A paper printed within the official newspaper of China’s Supreme Individuals’s Procuratorate has outlined a sweeping prosecutorial framework for cryptocurrency cash laundering circumstances, recommending presumptions of prison intent, new evidentiary requirements, and a nationwide platform for seized digital asset administration. The article, authored by researchers from Hunan Province’s Yuhu District Individuals’s Procuratorate and Xiangtan College’s School of Regulation, carries no authorized drive however indicators institutional stress to shut the hole between China’s current anti-money laundering statutes and the realities of blockchain-based monetary crime.
Closing Authorized Gaps and Redefining Proof Requirements
The article identifies a structural mismatch on the core of China’s present authorized framework: whereas the Anti-Cash Laundering Regulation has broadly expanded the scope of predicate offenses, Article 191 of the Felony Regulation nonetheless limits cash laundering prices to seven particular crime classes. In follow, this forces prosecutors to pursue many cryptocurrency laundering circumstances below the narrower “concealment crime” provision of Article 312, which the authors characterize as an overextended catch-all. To handle this, the paper recommends that prosecutors proactively add cash laundering prices in unbiased laundering actions, implement a compulsory “twin investigation” precept requiring evaluation of upstream crimes, and develop blockchain evaluation capabilities throughout judicial establishments.
On evidentiary process, the framework proposes adopting a precept of “self-authentication of blockchain knowledge,” below which on-chain transaction information verified by means of public blockchain explorers and confirmed by constant hash values could be granted preliminary authenticity, shifting the burden of proof to any difficult celebration. Analytical reviews from compliant blockchain analytics companies — resembling fund stream charts or handle affiliation analyses — could be admitted as professional testimony. Critically, the paper recommends establishing tiered presumption guidelines for subjective prison intent: suspects who use coin mixers or privateness cash, conduct high-frequency transactions by means of nameless wallets, or quickly liquidate massive crypto holdings at unreasonable costs could be presumed to have cash laundering intent until they will present credible counter-evidence.
Asset Restoration and the Scale of the Downside
The paper individually addresses the persistent difficulties in recovering and disposing of seized cryptocurrency. Underneath present Chinese language regulation, the regulatory prohibition on crypto buying and selling leaves investigative companies with few compliant channels to monetize confiscated digital belongings, undermining each state confiscation pursuits and sufferer compensation. The authors name for a national-level cross-departmental platform to standardize asset custody, valuation, and disposal by means of mechanisms resembling focused auctions, supported by a dynamic professional valuation committee drawing on each on-chain knowledge and worldwide trade costs.
The urgency of the proposal is underscored by the dimensions of the issue it addresses. Chinese language prosecutors charged greater than 3,000 people with cryptocurrency cash laundering in 2024. Based on Chainalysis, Chinese language-language laundering networks processed roughly $16 billion in 2025, representing roughly one-fifth of all world crypto cash laundering — a quantity the agency attributes partly to home capital controls that incentivize offshore wealth transfers and provide liquidity to worldwide prison networks.
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About The Creator
Alisa, a devoted journalist on the MPost, focuses on crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising tendencies and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
Extra articles
Alisa, a devoted journalist on the MPost, focuses on crypto, AI, investments, and the expansive realm of Web3. With a eager eye for rising tendencies and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
Extra articles
