An opinion piece in the official newspaper of China’s Supreme People’s Procuratorate proposes that courts should presume criminal intent when suspects utilize crypto mixers or privacy coins. The authors recommend establishing a national-level platform to custody and liquidate seized digital assets through compliant auctions, navigating China’s domestic crypto ban. The legal framework seeks to standardize blockchain evidence, allowing verified on-chain data and blockchain analytics reports to serve as admissible evidence in court. An article published in the Procuratorial Daily, the official newspaper of China’s Supreme People’s Procuratorate (SPP), has outlined an aggressive new framework for prosecuting cryptocurrency-related money laundering. The paper argues that China’s current legal infrastructure has failed to keep pace with rapid digital asset developments, creating friction for investigators attempting to trace illicit funds and gather evidence. Written by two district prosecutors from Hunan province and a university law professor, the proposal urges a fundamental shift in judicial presumptions. Under the suggested framework, courts would automatically infer a suspect’s intent to launder money if they use privacy-enhancing tools—such as coin mixers or privacy coins—unless the defense provides reasonable counter-evidence. This shift would effectively place the burden of proof onto defendants once a transaction chain analysis is presented by state prosecutors. While virtual currencies improve transaction efficiency, their decentralized, anonymous, and cross-border circulation characteristics also provide unprecedented convenience for money laundering crimes, the authors stated in the publication. To counter these challenges, the article pushes for the adoption of a double investigation protocol, mandating that investigators screen every primary criminal case for concurrent money laundering indicators. The proposal also tackles the logistical challenge of handling confiscated digital assets within a country where cryptocurrency trading has been strictly prohibited since 2021. The authors recommend building a specialized, national-level platform tasked with the custody, valuation, and liquidation of seized cryptocurrencies through compliant channels like targeted auctions. Under this model, an expert committee would value the assets by combining public blockchain data with global exchange pricing. Although the opinion piece carries no immediate legal force, it offers a clear window into the evolving legal strategy of Chinese regulators. According to data cited in the report, Chinese procuratorial authorities have prosecuted more than 3,000 individuals for crypto-related money laundering since 2024. Furthermore, data from blockchain intelligence firm Chainalysis indicates that Chinese-language money laundering networks processed approximately $16 billion in 2025, accounting for roughly 20% of the global total. Beyond domestic enforcement, the authors emphasize the need for robust international cooperation. The paper calls for the creation of cross-border protocols and blockchain-based tracking systems to help Chinese authorities freeze and recover illicit assets that have been transferred to international jurisdictions. Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
