Chinese Supreme Court Includes Crypto in AML Law Amendment

China’s top judicial bodies have officially acknowledged cryptocurrency transactions within their revised anti-money laundering (AML) laws. For the first time, the country’s Supreme People’s Court and Supreme People’s Procuratorate have classified virtual asset transactions as a recognized method for laundering money.

New Interpretations of AML Laws

During a joint press conference on August 19, representatives from both the Supreme People’s Court and the Supreme People’s Procuratorate announced key updates to China’s AML laws, which will be effective starting August 20. Among these revisions, the most notable is the inclusion of cryptocurrency transactions as a method for laundering money. According to the announcement, converting and transferring illegal gains through crypto will now be viewed as an act of concealing the origin and nature of criminal proceeds.

Individuals found guilty of such activities will face a range of penalties. Fines will range from 10,000 Chinese yuan (approximately $1,400) to 200,000 Chinese yuan (around $28,000), depending on the severity of the offense. Additionally, offenders could face prison sentences ranging from five to ten years for more serious violations.

The updated AML regulations consist of 13 articles aimed at providing clearer definitions and guidelines for identifying money laundering activities. These articles detail the specific scenarios in which actions that hide or disguise illicit proceeds are considered criminal. They also establish the corresponding fines and prison sentences that offenders will face under the new rules.

These amendments follow earlier calls from Chinese Prime Minister Li Qiang for the country to update its AML laws to address cryptocurrency-related crimes. Authorities have committed to taking stricter action against those who use crypto and blockchain technology for illegal activities. The People’s Procuratorate has highlighted that crypto-based money laundering has emerged as a significant tool for criminals to obscure their illegal wealth.