The legal red line is untouchable: the supreme law is the laundering of virtual currency, the flight of funds and the maintenance of financial stability
On the morning of 9 March, the second plenary meeting of the fourth session of the Fourteenth National People ' s Congress was held in the People ' s Hall of Beijing, where the President of the Supreme People ' s Court, Zhang Jun, made it clear in his working report that:New types of crime are punishable by law, money-laundering using virtual currency as a medium, money-deficit, etc., and joint efforts are made to prevent the illegal cross-border transfer of funds and to safeguard the financial security and social stability of the State。
According to the report, in 2025 the Supreme People ' s Court concluded more than 31,900 cases and the courts at all levels concluded more than 36 million cases。
2026 as & ldquo; fifteen & rdquo; start yearguided by xi jinping's new-era chinese socialist ideology, the national public security and investigation department has fully implemented the 20th and 20th plenary sessions of the party, adhered to political rule, the rule of law, and the security of the workforce. it has made the fight against illegal financial crimes linked to the virtual currency a central task, which marks a synergy between the judicial and law enforcement levels and a comprehensive normalization and high-pressure phase in the fight against illegal activities in the virtual currency. the current virtual currency has become criminal money & ldquo; laundering & rdquo; and the main route to illegal exit. this paper, in conjunction with the regulatory posture and new crime dynamics, interprets the direction of governance and gives guidelines for universal prevention。
The attitude of the State is consistent:From tight regulation to severe judicial discipline, full-scale high-handed governance
virtual currency is not & ldquo; extra-legal & rdquo; our regulation and suppression of illegal financial activities related to virtual currency is always clear, firm and hierarchical。
Clear characterization at the policy level
Multi-sectoral communications, such as those of the Central Bank, have made it clear that the virtual currency does not have the status of a legal currency and that the related exchange, trading and brokering services are illegal financial activities and are firmly prohibited by law。
2. Ongoing progress of the initiative
The national campaign to combat money-laundering offences is being carried out on a continuous basis, with a focus on virtual money-laundering, covering money flows, account control, platform detection and the entire chain of tracing abroad。
3. Reinforcement of judicial deterrence
the supreme law has successively included virtual money laundering and money flight in its work reports, and multiple local courts have handed down judgements in relevant cases that form & ldquo; conviction is well founded and sentence is rigorous & rdquo; judicially oriented, release & ldquo; zero tolerance & rdquo; strong signals。
This time, the two sides will again stress the severity of punishment, which meansStronger law enforcement, better justice and better coordinationAny activity involving illicit funds in virtual currency would face severe prosecution under the law。
Virtual money-laundering offences have escalated: more covert and more harmful
Under high-pressure surveillance, virtual money laundering and money flight techniques are constantly being upgraded and presentedSpecialization, chainization, cross-borderizationCharacteristically, the risks go far beyond traditional money-laundering patterns。
Specific new tools are as follows:
1. Hiding financial flows using decentralised tools
The complex model of transfer from an early, simple virtual currency to a & ldquo; de-centre exchange (DEX) + currency mixer + cross-chain bridge & rdquo; does not require real name certification, confuses money trails with cross-chain transfers, makes it difficult for regulation to track the source and destination of funds, and significantly increases the challenge。
2. Packaging of money-laundering through new concepts
Money-laundering from the direct exchange of virtual currency has evolved into a disguise based on new concepts such as NFT, GameFi, RWA and so forth, disguised as &ldquao; chain-up of assets &rdquao; &ldquao; high-income investment &rdquao; for the purpose of disguising the nature of money-laundering, where RWA monetization is also susceptible to alienation as a means of capital flight and is highly confusing。
3. Inducing general users to assist in washing Money
Money-laundering from self-operating to use “ running ” &ldquao; proxy ” “ collection of U&rdquao; and other models that draw ordinary users into the system, using high commission as bait, and induce users to collect virtual money, transfers and enable users to assist illicit money without knowing it. Idquo; white ” becoming an accomplice to money-laundering。
Social hazards are multiple, as shown by:
Financial losses are irreversible
Illicit funds are laundered through virtual currency and diverted abroad, and tracing is difficult and recovery rates are low。
2. criminalized “ toolbox ”
Providing easy access to funds for predicate offences such as telecommunication fraud, cyber gambling and illegal fund-raising, which magnifies the social harm of all types of offences and undermines social order。
3.Disruption of financial order
Avoidance of foreign exchange controls and illegal cross-border transfers of assets undermine normal financial management systems and affect the financial security and economic stability of States。
4. Vulnerability of ordinary users
participation in “ collection of virtual coins ” “ running points ” “ transfers on behalf ” etc. may, if not informed, constitute an accomplice to money-laundering, with corresponding legal liability。
virtual money laundering is no longer a “ industry grey behaviour ” it is a clear criminal offence, with risks transmitted directly to every participant。
Guide to universal prevention: moving away from the money-laundering trap and keeping the law and security safe Line
Individuals and institutions need to be more vigilant in the face of escalating judicial methods of combating crimeNo involvement, no assistance, no luckThe specific precautionary points are as follows:
1. Strong refusal to engage in any virtual currency illegal activities
do not engage in virtual currency exchange with statutory currency, do not collect virtual money on behalf of others, do not participate in suspicious business such as “ run points ” “ move brick arbitrage &rdquo。
2. Beware of the temptation of high proceeds and identify money-laundering schemes
vigilance on “ low-risk, high-return ” “ ” “ ” surrogate ” has a high risk of requiring bank cards, wallet addresses, notes, etc。
3. Power to protect personal information and assets
The private key of the wallet, the notes, the loan, the rental of accounts, the receipt code are not disclosed at will to avoid being used by the outlaws for money-laundering。
4. Timely reporting of suspicious leads
In the event of virtual money-laundering, illegal transactions, fraud and so on, they report it to the public security and financial supervision authorities and work together to curb the spread of crime。
Foreword
The report on the work of the Supreme Law again states:Virtual currency is not an extrajudicial place, money-laundering and money-laundering are strictly punishableI don't know. From the policy ban to the judicial sword, from the control of the source to the full chain of strikes, the State ' s system of governance for virtual currency-related illicit crime is improving and the fight continues to increase. Virtual money-laundering appears to be hidden, while the whole process is retroactive, risk predictable, and liable, with legal costs for any luck。
