China to establish crypto asset transaction tracking system

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The director of China’s central bank anti-money laundering office said the People’s Bank of China will establish a tracking system for virtual assets, such as cryptocurrencies and NFTs, to combat crime related to virtual, adopting technologies such as artificial intelligence and machine learning, local media in mainland China reported.

Fast facts Gou Wenjun said at a forum of the First National Financial Security Summit in Lujiazui and the 11th China Anti-Money Laundering Summit that virtual assets have contributed to illegal transactions such as extortion, drug trafficking, gambling and money laundering challenge risk oversight and governance, and threaten investor rights, economic order and financial security, according to the report. Gou said banks should strengthen the monitoring and analysis of virtual asset transactions and authenticate the real names of parties involved in virtual asset transactions. The bank will continue to work with 60 financial intelligence agencies abroad to track virtual asset transactions both domestically and abroad to support law enforcement agencies. Gou said the central bank will strive to “improve the transparency of virtual assets and explore the use of regulatory sandboxes to determine the essence and effects of virtual assets” and “guide the market so that ‘he abandons the imagination of anarchy and decentralization “. China has banned all cryptocurrency-related transactions, even those made through crypto exchanges based outside of China. However, cryptocurrency transactions from mainland China still exist. Mainland crypto traders register foreign companies to circumvent crackdowns.

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