China MSS Warns Cryptocurrencies Used for Espionage and Money Laundering

China's Ministry of State Security (MSS) has warned that cryptocurrencies can be used for money laundering, cyberattacks, and espionage. The agency claims that crypto transactions are not completely anonymous because blockchain records and crypto-to-fiat exchanges can link transactions to real identities.

The MSS report states that overseas intelligence services may use cryptocurrencies when recruiting people for spying, telling them that crypto payments are difficult to trace. However, the agency argues that this confidence is misplaced, as transaction history remains on the network and can be linked to real identities through exchanges and payment services.

China has maintained its long-running crackdown on cryptocurrency businesses, with Beijing declaring that speculation involving virtual currencies creates financial risks and disrupts economic and financial order. The MSS warning adds national security concerns to China's restrictions on crypto activity.