Chinese Prosecutors Float Treating Crypto Mixer, Privacy Coin Use as Sign of Money Laundering
A Chinese prosecutors’ newspaper article proposes stricter rules for crypto money-laundering cases. It suggests courts should presume laundering intent when suspects use mixers, privacy coins, anonymous wallets, or sell large amounts at suspicious prices unless they provide counterevidence. It also calls for a “double investigation” approach that examines both the underlying crime and the movement of crypto funds, using blockchain records, analytics reports, and circumstantial evidence even if not every coin is traced. The piece also urges China to create a national system to custody and liquidate seized cryptocurrency through lawful channels, since trading bans leave confiscated tokens difficult to dispose of. Proposed tools include expert valuation, directed auctions, and cross-border asset recovery mechanisms. Though nonbinding, the article reflects growing prosecutorial thinking as China continues to see heavy crypto-related laundering despite its 2021 trading and mining ban.
