Opinion: China Fortifies Its ‘Firewall’ Against Crypto
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Beijing’s war on virtual currencies isn’t just about financial risk. It’s a campaign to protect the public’s savings by rooting out money laundering, capital flight and fraud.
The campaign against speculative virtual-currency trading has gained new momentum. In a recent meeting of its coordination mechanism for combating such activities, the People’s Bank of China (PBOC) assembled a powerful coalition. Thirteen top-level departments — including the Ministry of Public Security, the Central Financial Commission, the Supreme People’s Court, and the Supreme People’s Procuratorate — participated.
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- China has intensified its crackdown on virtual-currency speculation, coordinating 13 top-level departments to enforce bans and target related illegal activities.
- In 2024, 3,032 individuals were prosecuted for money laundering involving virtual currencies, with criminal groups often exploiting marginalized youth.
- Major challenges remain: tracing funds, gathering evidence, and insufficient legal frameworks; authorities emphasize inter-agency cooperation and raising public awareness.
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What Happened When
- 2013：
- The PBOC and four other ministries issued a notice clarifying that Bitcoin is a specific virtual commodity, not legal currency, and barred financial institutions from participating in related businesses.
- 2017：
- Seven ministries issued a notice halting all initial coin offerings (ICOs), moving toward a comprehensive ban on virtual-currency trading.
- By 2021：
- A notice from 10 ministries, including the PBOC, formally classified all virtual-currency-related business activities as illegal financial activities.
- 2024：
- Authorities prosecuted 3,032 individuals in money laundering cases involving the use of virtual currencies to transfer illicit proceeds.
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