China is set to introduce revised crypto AML regulations in 2025.

China is set to make major revisions to its anti-money laundering (AML) regulations to include cryptocurrency-related transactions amid calls for more scrutiny of the nascent crypto industry by policymakers in the country.

According to local media reports, Prime Minister Li Qiang will discuss the revised AML law in 2018. On January 22, he chaired the executive session of the Council of State. The first revised draft of the country's AML laws was tabled in 2021 and the revised draft was included in the legislative work plan of the state assembly in 2023 and will come into effect in 2025.

This will be the first significant revision to China's AML regulations since 2007.

Prominent academics and financial experts who participated in the discussion on the revised draft of the AML Regulations said that the relatively broad scope of the AML Act made it difficult to make the draft comprehensive. The most urgent content can only be reflected in the first frame.

Peking University Law School Professor Wang Xin, who participated in the discussion, stressed the importance of solving the problems surrounding crypto money laundering at the legal level. Xin added that the use of cryptocurrency and digital assets as currency is gradually becoming a mainstream trend, and current Chinese laws do not have a clear definition of digital assets.

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The professor said the revised draft includes prevention of money laundering of digital assets, but there is a lack of practical guidance on confiscation, reduction and confiscation of assets from money laundering crimes, resulting in a “disconnect”. He added that there is still room for improvement in combating digital asset-related money laundering.

China in 2010 In 2021, it imposed a blanket ban on the use of cryptocurrency, banned offshore exchanges from providing services and banned all forms of mining. However, with the advancement of technology and the decentralized nature of cryptocurrencies, mainland users have found ways to enter the crypto market, leading to money laundering risks. The new revised regulation aims to lay down strict guidelines to curb these practices.

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