People’s Bank of China announced a new anti‑money laundering initiative that specifically targets virtual currency laundering, signaling tighter controls for the crypto market and its investors.
Regulatory Framework for the 14th Five‑Year Plan
The central bank released a policy document reviewing AML work during the 14th Five‑Year Plan, emphasizing continued pressure on money‑laundering offenses. Authorities will prioritize virtual currency crimes, cross‑border fund transfers, telecom fraud, online gambling, drug offenses, illegal fundraising, and underground banking networks. The revised Anti‑Money Laundering Law will guide risk‑based supervision and improve beneficial‑ownership reporting.
Focus on Virtual Currency Laundering
Since a joint campaign launched in 2022 by the People’s Bank of China, the Ministry of Public Security, and nine other agencies, investigators have expanded a “dual investigation” approach to crack down on crypto‑related illicit flows. This intensified effort reflects the sector’s growing significance for investors and the broader blockchain ecosystem. Enforcement teams now target both the source and destination of suspicious crypto transactions.
International Cooperation and Future Enforcement
China’s AML strategy now includes deeper cross‑border enforcement cooperation, aligning domestic actions with global standards. Officials warned that future measures will strengthen coordination with foreign regulators to curb transnational money‑laundering schemes. The combined focus on blockchain compliance and market transparency aims to protect both domestic and international investors from illicit activity.