The Chinese Communist Party has called for stronger oversight against corruption methods using virtual currency and blockchain technology.
The Central Committee of the Communist Party of China has called for stricter measures against corruption methods that utilize the internet, cryptocurrencies, cross-border fund transfers, and blockchain technology.
The text emphasizes the need to detect financial transactions concealed using digital technologies and to more closely monitor illicit money movements linked to public officials. The ability of virtual currencies to expedite cross-border transfers and the spread of transactions across multiple addresses leads Chinese authorities to view these assets as risky for corruption investigations.
However, the announcement should not be seen as an entirely new ban on cryptocurrency trading in China. The decision primarily addresses discipline and anti-corruption policies within the Communist Party. The document does not mention Bitcoin or any specific cryptocurrency, nor does it announce new regulations for mining, stablecoins, or individual investor transactions.
China’s existing restrictions on the cryptocurrency sector are already quite extensive. Banks were restricted from offering Bitcoin-related services in 2013, and cryptocurrency exchanges and initial token offerings were banned in 2017. In 2021, authorities declared all commercial transactions related to cryptocurrencies illegal.
The new text focuses less on expanding existing bans and more on preventing the use of crypto and blockchain tools in financial crimes. Nevertheless, the statement once again demonstrates that China is not backing down from its strict surveillance policy on digital assets.
*This is not investment advice.
