Some news regarding China’s regulatory developments has caught my attention. The Ministry of Public Security has reportedly put forward a bill related to preventing cyber crime and is currently soliciting public comments.

Looking at the content, it seems that the provisions concerning cryptocurrencies are becoming quite strict. Specifically, it appears that it would clearly prohibit intentionally concealing, transferring, or purchasing and selling crypto assets involved in illegal activities. In addition, the provision of fund transfer services using virtual currencies originating from crimes will also be covered.

China’s regulatory posture has long tended to be strict, but this bill seems to be trying to spell that out even more explicitly. When viewed across the entire cryptocurrency market, strengthening such regulations is probably an unavoidable trend. In particular, from the perspective of anti-money laundering, similar moves are likely to spread in other countries as well.

Once a bill of this kind passes, it is certain that compliance requirements on the platform side will become even stricter. For people involved in the China market, it will be necessary to closely watch future developments.