China State Security Ministry Calls Crypto an 'Accomplice' to Espionage, Warns on Anonymity

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China's Ministry of State Security has issued a stark warning that virtual assets, or cryptocurrencies, can be exploited for espionage, money laundering and cyberattacks.

Cointelegraph reported on October 1 that the ministry recently said in a social media post that virtual assets could act as an "accomplice" to espionage. It said overseas anti-China forces are using cryptocurrencies to disrupt the financial order and undermine national security.

The ministry also challenged perceptions of crypto anonymity. It urged caution, saying foreign intelligence agencies could exploit the claim that cryptocurrency transactions are difficult to trace to recruit targets.