Crypto

China’s money laundering crackdown puts crypto investors, USDT traders at risk

Published

2 years ago

August 20, 2024

China’s money laundering crackdown puts crypto investors, USDT traders at risk

China is closely monitoring the use of virtual assets in money laundering activities, according to the country’s highest court, in a move that legal experts say could increase the risk of prosecution for trading cryptocurrency on the mainland.

Using virtual assets to transfer or convert criminal proceeds is among a range of money laundering methods that violate China’s criminal law, according to a judicial interpretation published on Monday by the Supreme People’s Court and the main agency responsible for legal prosecution, the Supreme People’s Procuratorate.

The top court’s judicial interpretation increases the legal risks faced by mainland Chinese cryptocurrency investors when making trades, Shao Shiwei, a lawyer at Shanghai-based Mankun Law Firm, wrote in a post on WeChat.

“From now on, it will be more difficult for USDT merchants to operate and for ordinary people to occasionally trade cryptocurrencies because of potentially high legal risks,” Shao wrote, referring to the world’s biggest stablecoin. Tether’s USDT stablecoin is a type of cryptocurrency pegged to the US dollar.

Money laundering related to the use of virtual assets, such as cryptocurrencies, has become an urgent focus in Chinese authorities’ crackdown on financial crimes. Photo: Shutterstock

If ordinary investors happen to receive proceeds from criminal activities during the buying or selling of virtual assets, they could be held as suspects in a money laundering case, according to Shao. Crypto investors on the mainland must be more cautious to avoid inadvertently taking part in money laundering and other illegal activities, she added.

That judicial interpretation was released amid the constant “innovation and upgrade” in money laundering methods, including use of cryptocurrencies and game tokens, that have become more difficult to tackle in today’s internet age, Chen Xueyong, deputy chief judge of the top court’s No 3 Criminal Adjudication Tribunal, said at a press briefing on Monday.

It marked the first time that virtual assets have been explicitly mentioned in an official criminal law interpretation, providing a greater sense of urgency to implementing revisions to the country’s outdated Anti-Money-Laundering (AML) Law.

A proposed AML law amendment, which is expected to be passed next year, is expected to involve a sharpened focus on prosecuting crimes related to the use of cryptocurrencies to transfer assets abroad.

A view of one of the courts inside the Supreme People’s Court of China in Beijing. Photo: AFP

Calling out virtual asset-based money laundering in the judicial interpretation is not only a response to the highly frequent occurrence of such activities, but it is also aimed at courts to guide their determination of related cases, according to Liu Honglin, founder of Mankun law firm, which focuses on issues in the blockchain industry.

The new interpretation, however, does not equate cryptocurrency trading with money laundering, or change mainland China’s cryptocurrency policies in any way, Liu said.

At present, various crypto-related businesses, including cryptocurrency mining and initial coin offerings are banned on the mainland. Beijing, meanwhile, has given Hong Kong the green light to regulate and support the operations of virtual-asset businesses.

Still, investors on the mainland have stayed active in the market and remain important participants in many international cypto exchanges. Chinese cryptocurrency investors made US$1.15 billion in 2023 to rank fourth behind those in the United States, the United Kingdom and Vietnam, according to an international survey published in March by New York-based blockchain research firm Chainalysis.

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Crypto

Millions of dollars in crypto left Iranian exchanges after strikes, researchers say

Published

4 hours ago

March 3, 2026

Press Room

Outflows from Iranian crypto exchanges spiked in the hours after the U.S. and Israeli ‌strikes on Iran on Saturday, two blockchain analytics companies said, although researchers added it was not possible to be certain what was behind the moves.

Crypto

Wisconsin lawmakers crack down on cryptocurrency scams

Published

17 hours ago

March 3, 2026

Press Room

Wisconsin lawmakers crack down on cryptocurrency scams

MADISON, WI (WTAQ) — A new bipartisan bill is the state legislature is attempting to keep Wisconsinites safe from scammers.

Assembly Bill 968 creates consumer protections around cryptocurrency kiosks—and is aimed at stopping criminals from using crypto-kiosks to steal from victims. It was passed by the assembly last month and is now heading to the senate.

Americans lost over $330 million to scams involving crypto-kiosks in 2025.

As amended; the bill that passed the assembly would:

set daily transaction limits at $1,000
require cryptocurrency-kiosk operators to provide users with receipts
implement consumer-identification measures for every transaction
allow scam victims to receive refunds

“This also requires crypto-kiosk operators to be licensed as a money transmitter with the Department of Financial Institutions,” said bill co-author Representative Dean Kaufert (R-Neenah). “Right now there is no state statute with regards to these crypto machines, and there has to be some oversight.”

Over 700 cryptocurrency kiosks are located in convenience stores, gas stations, restaurants, and other locations throughout Wisconsin.

Detective Kevin Bahl with the Green Bay Police Department says although these scams don’t discriminate, scammers usually target the senior population.

“That’s because they’re the ones with more of the built up funds; that they can lose a significant of money, but we have seen a lot of younger victims too,” said Det. Bahl. “Victims are losing anywhere between a couple thousand dollars, all the way up to hundreds of thousands of dollars.”

The senate will reconvene beginning the second week of March, where Rep. Kaufert believes they will pass Senate Bill 975. Then the bill will go to the governor for approval by April 1. If approved, the law would likely go into effect around June.

Crypto

HSBC Says Lasting Iran Conflict Would Boost Oil, Gold, USD and Hurt Equities

Published

1 day ago

March 2, 2026

Press Room

HSBC Says Lasting Iran Conflict Would Boost Oil, Gold, USD and Hurt Equities

Rising Iran conflict risks are jolting global markets, with HSBC warning oil shocks, currency swings, and equity volatility hinge on whether supply routes and production are disrupted, shaping inflation expectations and investor risk appetite worldwide. HSBC: Long-Running Conflict Would Reshape FX, Rates, and Equity Leadership Escalating geopolitical tensions are reshaping the global market outlook. Global […]