China Tightens Crypto-Laundering Controls in Financial Security Push

The People’s Bank of China has signaled a shift toward a risk-based regulatory framework, moving beyond traditional banking to encompass real estate, precious metals, and legal services. Under the updated Anti-Money Laundering Law, authorities are deploying a dual-investigation strategy that targets both the primary criminal activity and the subsequent laundering networks. This approach aims to dismantle the sophisticated mechanisms used to mask fund movements, including the abuse of nominee accounts and emerging financial technologies.

Beijing’s regulatory expansion reflects a broader effort to neutralize threats from stablecoins and tokenized assets, which the central bank maintains hold no legal status as sovereign currency. While the state has explicitly classified crypto trading and market-making as illegal, officials remain engaged in the global discourse on digital finance. Liu Guixiang of the Supreme People’s Court noted that the judiciary is actively refining adjudication standards for virtual currency disputes, while the central bank continues to advocate for international cooperation on asset recovery and intelligence sharing to combat the growing challenge of cross-border financial crime.