China says crypto isn’t anonymous; HK, S. Korea tighten rules

1. Homepage
2. >
3. News
4. >
5. Business
6. >
7. China says crypto isn’t anonymous; HK, S. Korea tighten rules

TL;DR: China‘s Ministry of State Security has warned that cryptocurrencies are not beyond the law and their “anonymity” is merely an illusion as Hong Kong regulators expand financial reporting oversight for licensed digital currency firms in a new MOU, while South Korea is thinking of legalizing crypto market makers following JPYC’s surge.

Key Takeaways:

Crypto not a legal ‘safe haven’ for criminals, China’s Ministry of State Security warns

On September 28, the Chinese Ministry of State Security (MSS) issued a warning claiming that the decentralized, peer-to-peer nature of cryptocurrencies enabled by blockchain technology is a misconception. 

The MSS said that the concealed nature of cryptocurrency transactions and the challenge of regulating them have made crypto a tool for criminal activities, which in turn created a range of security risks.

They explained that cryptocurrencies can facilitate money laundering by allowing criminals to conceal and transfer proceeds from telecom fraud, online gambling, cross-border smuggling, and other crimes. They added that bad actors often conceal and move illicit funds across borders by splitting the assets into smaller transactions and routing them via cryptocurrencies. Such activities can circumvent financial controls, complicate national foreign exchange management, and create risks to economic and financial security.