{"id":198181,"date":"2026-07-14T19:47:38","date_gmt":"2026-07-14T19:47:38","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=198181"},"modified":"2026-07-14T19:47:38","modified_gmt":"2026-07-14T19:47:38","slug":"chinas-prosecutors-move-to-treat-crypto-mixers-as-evidence-of-money-laundering","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=198181","title":{"rendered":"China\u2019s Prosecutors Move to Treat Crypto Mixers as Evidence of Money Laundering"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

China\u2019s Prosecutors Move to Treat Crypto Mixers as Evidence of Money Laundering<\/a><\/p>\n

<\/div>\n

China\u2019s Supreme People\u2019s Procuratorate has published a set of recommendations that would reshape how the country investigates and prosecutes cryptocurrency-related money laundering, including a proposal to treat the use of mixers and privacy coins as evidence of criminal intent.<\/p>\n

The article, released<\/a> in the official Procuratorial Daily, was written by two prosecutors from Hunan Province\u2019s Yuhu District and an associate law professor at Xiangtan University.\u00a0<\/p>\n

The authors argue that the decentralized, pseudonymous, and cross-border design of virtual currencies has outpaced China\u2019s legal framework and created a three-part problem: defining the offense, gathering evidence, and recovering stolen assets.<\/p>\n

At the center of the debate is a gap between statutes. China\u2019s Anti-Money Laundering Law has dropped restrictions<\/a> on which predicate offenses qualify, but Article 191 of the Criminal Law still limits money laundering<\/a> charges to seven categories.\u00a0<\/p>\n

As a result, most crypto cases fall under Article 312, which covers concealing criminal proceeds, a charge the authors describe as a catch-all. They call for wider use of the money laundering statute and a \u201cone case, two checks\u201d principle that would require investigators to look for laundering indicators in every major criminal probe.<\/p>\n

Burden shifts in China\u2019s courts<\/h2>\n

Three proposals stand out. The first, described as blockchain self-authentication, would treat on-chain records from public block explorers as reliable when hash values match, and would preliminarily establish their integrity.\u00a0<\/p>\n

The second would shift the burden of proof: once prosecutors submit a transaction-chain analysis report, the defense would need to disprove it.\u00a0<\/p>\n

The third would allow courts to presume laundering intent from conduct alone. Under that standard, the use of mixers or privacy coins, the sale of large holdings at off-market prices, or high-value transactions through anonymous wallets with no clear source would establish intent unless a defendant offered a reasonable rebuttal.<\/p>\n

The authors also address evidence collection, noting that mixers, privacy coins, and decentralized exchanges allow multi-layered splitting and cross-chain transfers that traditional methods struggle to trace.\u00a0<\/p>\n

They propose adaptive rules for electronic data, tiered standards of proof, and clearer authorization for technical measures such as real-time monitoring and traffic analysis, with limits to protect personal information and cybersecurity.<\/p>\n

Asset recovery presents a further obstacle. With crypto trading banned in China, authorities hold seized coins without a legal channel to liquidate them.\u00a0<\/p>\n

The paper recommends a national platform to store, value, and dispose of confiscated assets through compliant channels, along with an expert committee that would set values using on-chain data and international exchange prices.<\/p>\n

It also urges bilateral and multilateral agreements and a blockchain-based \u201cjudicial cooperation chain\u201d to trace and freeze funds moved abroad.<\/p>\n

The recommendations carry no legal force, but they signal a possible direction for China\u2019s courts. The proposals arrive as Chinese-language laundering networks processed<\/a> $16.15 billion in 2025, about 20% of the global total, according to Chainalysis.\u00a0<\/p>\n

In 2024, Chinese prosecutors brought charges against more than 3,000 people in crypto-related laundering cases, a figure that underscores the scale of the challenge.<\/p>\n

This post China\u2019s Prosecutors Move to Treat Crypto Mixers as Evidence of Money Laundering<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Micah Zimmerman<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine China\u2019s Prosecutors Move to Treat Crypto Mixers as Evidence of Money Laundering China\u2019s Supreme People\u2019s Procuratorate has published a set of recommendations that would reshape how the country investigates and prosecutes cryptocurrency-related money laundering, including a proposal to treat the use of mixers and privacy coins as evidence of criminal intent. The article, […]<\/p>\n","protected":false},"author":0,"featured_media":198182,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-198181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/198181"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=198181"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/198181\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/198182"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=198181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=198181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=198181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}