Back Forklog China Labels Cryptocurrencies as 'Accomplices' in Espionage
China’s Ministry of State Security (MSS) warned citizens the risks of cryptocurrencies, describing them as tools for money laundering, cyberattacks, and espionage. The agency also stated that the anonymity of crypto transactions is an “illusion.”
“The potential dangers should not be underestimated,” the article emphasized.
“The potential dangers should not be underestimated,” the article emphasized.
The publication stated that foreign intelligence services might use cryptocurrencies to fund espionage activities and persuade potential agents of their supposed confidentiality.
According to the MSS, blockchain records transaction history, and exchanging cryptocurrencies for fiat money and interacting with payment services can link addresses to real identities. Therefore, relying on the complete untraceability of such operations is not advisable.
The agency also associated cryptocurrencies with money laundering and cyberattacks, reiterating that the activities of crypto companies in China are illegal.
This new warning continues Beijing’s hardline stance. In February, the People’s Bank of China and seven other state agencies confirmed restrictions on the cryptocurrency sector, extending them to operations with real-world asset tokenization ( RWA ).
China banned ICOs and shut down crypto exchanges in 2017. In 2021, authorities prohibited mining and declared cryptocurrency business illegal.
Meanwhile, in the autonomous region of Hong Kong, authorities have allowed the development of their own regulated digital asset market.
Earlier, in July, China’s Supreme People’s Procuratorate published guidelines to combat money laundering through cryptocurrencies.
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