Chinese prosecutors propose treating cryptocurrency mixer and privacy coin use as prima facie evidence of money laundering intent.
Regulation & Gov ·
China's Supreme People's Procuratorate newspaper has published a framework for prosecuting cryptocurrency money laundering that proposes treating the use of transaction-obscuring tools as grounds for presuming criminal intent. The opinion piece, authored by two district prosecutors in Hunan province and a law professor, calls for courts to assume laundering intent when suspects employ coin mixers or privacy coins unless they furnish "reasonable counter-evidence," and similarly for those moving large sums at suspect prices or conducting high-frequency transfers through anonymous accounts. Though the article carries no binding legal force, it signals thinking within China's prosecution system, which brought charges exceeding 3,000 people in 2024 alone for crypto-related money laundering.
The proposals address gaps in enforcement tooling. Prosecutors currently rely on broader "concealment" charges to pursue crypto cases because the dedicated money-laundering statute covers only seven predicate crimes, a constraint the authors say has created an overextended workaround. The authors also recommend treating verifiable on-chain records and reports from compliant blockchain analytics firms as admissible evidence, and establishing a "double investigation" standard that would require mapping crypto flows alongside underlying crimes.
The framework's third plank tackles asset disposition: China's prohibition on trading cryptocurrency has left seized holdings in legal limbo. The authors propose a national platform to hold and sell confiscated coins through authorized channels, paired with expert valuation committees and cross-border recovery mechanisms. How China's courts will actually adopt or weight these recommendations remains uncertain, as does enforcement pace and scope.