Strengthening China's Cybercrime Prevention: Putting a Brake on Cryptocurrency Misuse

SpeakWithHatOn · 2026-02-12T03:18:16+00:00

The Chinese Ministry of Public Security has proposed a draft law aimed at preventing cybercrime in the digital era, particularly addressing the misuse of cryptocurrencies for money laundering. This initiative prohibits individuals and organizations from hiding, transferring, acquiring, or selling crime-related cryptocurrencies and bans services related to illegal cryptocurrency transactions, aiming to enhance transaction transparency and curb illegal fund circulation.

SpeakWithHatOn

2026-02-12 03:18:16

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The Ministry of Public Security of China recently released a draft of a new bill aimed at preventing cybercrime in the digital age and opened it for public comment. This initiative is an important step toward addressing the misuse of cryptocurrencies for money laundering and illegal activities.

Details of the Regulatory Measures Proposed by the Public Security Ministry

The bill explicitly prohibits individuals and organizations from intentionally concealing, transferring, acquiring, or selling cryptocurrencies related to criminal activities. According to NS3.AI reports, this measure is positioned to enhance transaction transparency and make it easier to trace illegal funds. It indicates a move toward stricter regulation of the cryptocurrency market in China.

Prohibition of Services Related to Illegal Cryptocurrency Activities

Furthermore, the bill includes provisions that ban the provision of remittance services and other fund circulation services using cryptocurrencies identified as originating from criminal activities. This regulation aims to fundamentally restrict illegal fund transfers using cryptocurrencies and block unlawful money flows within China.

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