China Warns Against Cryptocurrency Use Citing Misconceived Anonymity

China's Ministry of State Security has issued a warning about the use of cryptocurrencies, claiming they are being used for cyberattacks and anti-China activities. The ministry stated that some individuals believe receiving overseas funds via cryptocurrency can achieve anonymous transactions and evade legal sanctions due to their 'untraceable' nature.

However, the ministry countered that cryptocurrency is not extraterritorial and that its anonymity is merely an appearance. It explained that blockchain's core features of openness, transparency, and immutability make anonymity a false premise.

The ministry emphasized that professional institutions can track actual users behind wallet addresses and reconstruct the entire fund flow process through technical means such as on-chain data analysis and big data comparison.