China just pulled the trigger on crypto transactions, classifying them as money laundering under its latest legal interpretation. This is the harshest stance yet from a country already known for its anti-crypto measures.
The Supreme People’s Court and the Supreme People’s Procuratorate rolled out their “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Money Laundering.”
This Interpretation has several articles, breaking down everything from self-laundering to hiding the dirty cash from crimes committed by others. If you’re mixing crypto with criminal proceeds, you’re in big trouble now, especially if you’re in the Mainland.
Crypto gets dragged into money laundering
Article 1 hits those who use crypto to conceal or hide the origins of their ill-gotten gains, slapping them with the full force of China’s anti-money laundering laws. If you think you can play dumb, think again.
Article 2 says if you “knew or should have known” that the money was dirty, you’re just as guilty as the person who did the crime.
The courts won’t take “I didn’t know” as an excuse. Article 3 outlines how the courts will determine if you really knew what was going on.
They’ll look at the info you had, how you handled the money, and how shady your transactions were. If your story doesn’t add up, tough luck.
Article 4 sets the bar for what counts as “serious circumstances.” If you’re moving more than 5 million RMB in laundered funds, you’re in for a world of hurt.
Also, if you refuse to cooperate or if your actions cause big financial losses, you’re looking at some very serious consequences.
Fines, prison time, and no easy way out
Articles 5 through 7 go even further, laying out the specific ways people might try to launder money through crypto. Whether it’s through pawning, investing in dodgy financial products, or hiding cash in casinos and shopping malls, China’s on to you.
They’ve listed everything they can think of, from transferring criminal proceeds to converting them into something else, like gold or even lottery tickets. And yes, crypto transactions are now officially on that list.
But China isn’t just interested in busting individuals, they’re going after organizations too. Article 11 makes it clear that if a company gets caught laundering money, the whole entity can be fined, and the people in charge will be held responsible.
Article 10 says you might get a lighter sentence if you confess and help recover the money, but that’s only if your crime is considered minor.
Article 9 drives home the penalties. If you’re caught and convicted, expect to be hit with heavy fines and possibly years behind bars. The fines range from a minimum of 10,000 RMB if you get off light, to 200,000 RMB if you’re in more serious trouble.
And that’s just the start, because prison time is very much on the table.