China will revise its outdated anti-money laundering (AML) law to deal with the growing risks associated with the criminal use of virtual assets.
The basis for the legislative initiative was proposals from the China Anti-Money Laundering Research Center at Fudan University in Shanghai to address regulatory gaps in combating money laundering using virtual assets.
According to the South China Morning Post, the draft amendments to the anti-money laundering law have been preliminary approved by the relevant committees under the State Council and will soon be submitted for approval to the National People's Congress (NPC)..
Previously, the draft updated anti-money laundering law was approved by the Supreme People's Procuratorate. The law enforcement agency expressed interest and readiness to intensify efforts to suppress offenses in the field of money laundering related to the use of digital assets, especially in terms of the withdrawal of funds abroad.
Until final approval, the text of future legislative amendments is not publicly disclosed.
In early February, police in the city of Chifeng in the Chinese province of Inner Mongolia solved a case related to a cryptocurrency pyramid, investments in which amounted to a total of $280 million..