Legislation is stepped up, and the risk of money laundering in cryptocurrency is facing a "tightening curse"
With the rise of digital currency, cryptocurrency has gradually become the new darling of the financial market. However, the money laundering risk behind it is also becoming increasingly prominent. In order to meet this challenge, China's legislature is brewing a big move - revising the Anti-Money Laundering Law!
Legislative background: the hidden dangers of money laundering in cryptocurrency
In recent years, cryptocurrency has become a "hotbed" for criminal activities such as money laundering, drug trafficking, and smuggling due to its anonymity and strong cross-border liquidity. In order to curb these risks at the source, China's legislature decided to revise the Anti-Money Laundering Law and include cryptocurrency in the scope of supervision.
Responsibilities of financial institutions: assessing the risks of new business models
Against this background, financial institutions have also shouldered new responsibilities. Not only must they strictly abide by anti-money laundering regulations, but they must also conduct a comprehensive assessment of the money laundering risks of new business models.
Hong Kong's first trial: strengthening the supervision of the cryptocurrency industry
As one of the international financial centers, Hong Kong's pace in this regard is significantly faster than that of the mainland. The Securities and Futures Commission of Hong Kong has begun to solicit industry opinions and consider introducing a new licensing system for cryptocurrency over-the-counter trading services. This move not only demonstrates Hong Kong's attention to the cryptocurrency industry, but also provides experience for other regions to learn from.
The Supreme People's Court's clear statement: virtual assets are not outside the law
Just recently, the Supreme People's Court of China also expressed a clear attitude towards virtual assets. Virtual assets may not only become a way for money laundering and tax evasion, but also have a serious impact on social stability. Therefore, money laundering that repeats crimes or causes major losses will be severely cracked down in accordance with the law.
Looking back on the Chinese government's regulatory process for digital assets, we can see an obvious trend: from the initial cautious wait-and-see to today's comprehensive strengthening of supervision. This not only reflects the government's attention and support for emerging technologies, but also demonstrates its firm determination to maintain the stability and security of the financial market.
