China plans to update its Anti-Money Laundering (AML) rules. They will now cover transactions related to cryptocurrency. This comes as the country’s policymakers want to take a closer look at the growing crypto industry.
However, Reports from local news claim that Prime Minister Li Qiang led a State Council meeting on Jan 22. They discussed changes to the AML laws. The first draft changes were proposed in 2021. The revised writing was included in the State Council’s 2023 work plan. It’s expected to become a law by 2025. This is the biggest update to China’s AML rules since 2007.
Prominent scholars and financial experts engaged in discussions about the updated Anti-Money Laundering (AML) regulations emphasized the expansive scope of the AML law. However, this makes creating a complete draft challenging. The most critical parts are presented in a basic setup to kickstart with.
Peking University Law School’s Professor Wang Xin, an attendee in the discussion, emphasized the pressing need to solve crypto money laundering problems on a legal basis. However, Xin stated that cryptocurrency and digital assets, increasingly used in money laundering, are growing issues; China’s existing laws don’t define digital assets.
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Additionally, the teacher observed the lack of clear instructions after stopping digital money scams in the updated draft. He pointed out that properly handling assets obtained from such crimes is not well-defined, causing a “gap.” He highlighted that we can still do better to fight against digital money laundering.
In 2021, China firmly outlawed cryptocurrency, barring off-shore exchanges and all mining. Yet, thanks to tech progress and the unregulated character of cryptocurrencies, folks on the mainland discovered routes to the crypto market. However, This action led to concerns about money laundering. Tighter rules are now being crafted to address these activities in the updated regulations.
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