Starting from January 1, 2025, China will officially launch a new Anti-Money Laundering Law, which will for the first time include virtual currency transactions in the regulatory system to address the increasingly serious issues of money laundering and other illegal activities. This decision indicates that the virtual currency sector is about to undergo profound adjustments.
The main points of change are detailed as follows:
1. Expansion of the boundaries of money laundering crimes: With the formal inclusion of virtual currency transactions into the anti-money laundering regulatory framework, all transactions involving virtual currencies will face stricter scrutiny and monitoring. This marks a further expansion of the scope of money laundering activities, and the regulation of related transactions will also become more stringent.
2. Strengthening of wage payment regulations: According to the new law, all wage payments must be made through legal currency, and the use of virtual currency for wage payments is strictly prohibited. This measure aims to protect the rights of workers and ensure transparency and standardization in wage payments.
3. Increased compliance requirements for platforms and users: Major trading platforms will implement stricter compliance measures, including:
Strengthening user identity verification: To ensure the authenticity and legality of transactions, all users must complete a strict identity verification process before engaging in virtual currency transactions.
Tight tracking of transaction fund flows: Platforms will establish a comprehensive fund tracking mechanism to closely monitor the flow of funds for each transaction to prevent the occurrence of money laundering and other illegal activities.
It is worth noting that individuals and enterprises can still legally participate in virtual currency transactions, but they must strictly adhere to the new compliance requirements and undergo rigorous audits by relevant departments. This means that virtual currency is no longer in a 'gray area', and future compliance will become a core element of the healthy development of the industry.
This series of reforms will bring new opportunities and challenges to China's anti-money laundering efforts, and also point the way for the long-term development of the virtual currency industry. We look forward to the virtual currency industry developing in a more standardized and healthy manner under the new regulations.