China is set to revise its outdated Anti-Money-Laundering (AML) law in a bid to tackle the increasing risks associated with virtual assets.
The draft amendment, discussed at a State Council meeting chaired by Chinese Premier Li Qiang, will soon undergo review by the national legislature, according to a report by South China Morning Post.
While the full text of the proposed amendment has not been disclosed, legal scholars have indicated that its primary objective is to combat money laundering involving virtual assets.
The urgency to address money laundering related to virtual assets is emphasized in a report by Chinese digital news media Jiemian, citing Yan Lixin, executive director at the China Centre for Anti-Money-Laundering Studies at Fudan University in Shanghai.
China’s latest initiative in the fight against money laundering reflects the government’s determination to stay abreast of developments in the Web3 space, including non-fungible tokens and other virtual assets.
This effort aligns with the country’s steadfast ban on cryptocurrency operations, such as mining and trading.
The forthcoming amendment to the AML law, expected to be passed next year, aims to address emerging forms of money laundering risks.
Peking University Law School professor Wang Xin, involved in the discussions surrounding the law’s revision, highlights the need to adapt to evolving practices.
Zhang Xiaojin, a senior prosecutor with the Supreme People’s Procuratorate, expressed a commitment to intensify efforts against money laundering and illegal foreign exchange trading crimes, particularly those involving digital currencies for transferring assets abroad.
Chinese authorities have heightened their scrutiny of money laundering cases related to
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