"It's clear! This is listed as a way of money laundering." Have you been flooded with similar news in recent days? On August 22, a Beijing Business Daily reporter noticed that many public security, judicial and other departments in Beijing, Jiangsu, Yunnan, Sichuan, Hunan and other places have spoken out, clearly listing "virtual asset" transactions as one of the ways of money laundering.

The content of this news comes from the "Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Application of Law in Handling Criminal Cases of Money Laundering" (hereinafter referred to as the "Interpretation") recently issued by the Supreme People's Court and the Supreme People's Procuratorate.

The Interpretation has 13 articles, which comprehensively combat money laundering crimes. One point in particular has attracted much attention, namely, the transfer and conversion of criminal proceeds and their benefits through "virtual asset" transactions can be identified as money laundering crimes. This is also the first time that the two high courts have clearly listed "virtual asset" transactions as one of the ways of money laundering in judicial interpretations.

As we all know, in recent years, virtual assets have increasingly become a "weapon" for money laundering and concealing criminal proceeds due to the peer-to-peer and global transmission characteristics of blockchain technology.

According to a research report by China Science and Technology Chain Security, in 2021 alone, the amount involved in money laundering, pyramid schemes, and online gambling using virtual currencies has reached 298.542 billion yuan, of which USDT, BTC, and ETH account for the majority. To this day, this number is still expanding rapidly.

In addition to money laundering, pyramid schemes, and online gambling, a senior lawyer in the industry revealed to the Beijing Business Daily reporter that he has also handled a variety of cases involving illegal and criminal acts using virtual assets. For example, a high-net-worth individual used virtual currency to circumvent my country's foreign exchange controls, transferred assets overseas, and purchased real estate, securities and other assets; a company and its actual controller used virtual assets to circumvent the legal channels for foreign exchange settlement, transferred overseas income into the country, and evaded taxes; a dishonest debtor used virtual assets to evade property inquiries by the court and creditors and maliciously refused to perform the debts determined by the effective judgment...

So, after the new regulations are released, what are the most risky behaviors in the cryptocurrency circle? In this regard, Xiao Sa, senior partner of Dacheng Law Firm, told the Beijing Business Daily reporter that the first is cryptocurrency traders, and the second is people with high demand for OTC (over-the-counter trading) and frequent transactions. For a long time, the biggest headache for cryptocurrency traders and people with high demand for OTC and frequent transactions is receiving the stolen money involved in the case.

Especially in recent years, due to rampant online fraud, a large amount of black money has flowed into underground banks, and the probability of people in the currency circle receiving dirty money in "virtual asset" transactions has increased significantly. Most of them have their cards frozen, and occasionally they are questioned by the investigation agency as witnesses. However, Xiao Sa also pointed out that criminal risks are like black swans around us, and we must guard against them. First of all, the source of funds for virtual asset transactions must be recorded. In addition, relevant records must be kept consistent, the funding chain must be complete, and there should be no situation where the source of large amounts of funds is unknown.

Xiao Sa said frankly that the official announcement of "virtual asset trading" as a crime means an increase in criminal risks for people in the cryptocurrency industry. The sword of Damocles hanging over their heads requires participants in the cryptocurrency industry to be extremely cautious. They cannot directly apply their previous experience in issuing coins to today. Keeping good evidence is the best way to protect themselves.

Chen Hongxiang, president of the Third Criminal Division of the Supreme People's Court, said that the people's courts will severely punish money laundering crimes in accordance with the law, and intensify the crackdown on money laundering crimes involving underground banks, using virtual currency, game currency, etc. "Self-laundering" crimes will be punished in accordance with the law. The intensity of sentencing and execution of fines will be increased, and the illegal gains of money launderers will be recovered in accordance with the law, so that no one will be allowed to illegally profit from criminal acts. At the same time, the criminal policy of combining leniency with severity will be implemented in earnest, and different situations and treatments will be distinguished to ensure the best political, social and legal effects.