China Warns Citizens of Crypto Dangers Amid Tightened Regulations
The Ministry of State Security in China has issued a warning to citizens about the dangers of cryptocurrencies. According to the agency, digital assets can be used for money laundering, cyberattacks, and financing espionage activities.
The ministry emphasized that the idea of complete anonymity in crypto transactions is an 'illusion.' It claims that foreign intelligence services use cryptocurrencies to pay for espionage operations and convince potential agents that such payments are untraceable.
The agency notes that blockchain technology stores transaction history, making it possible to link cryptocurrency addresses to real individuals. This means that absolute confidentiality of transactions is impossible.
China has maintained a tough stance on the crypto market, banning ICOs and closing exchanges in 2017. In 2021, authorities banned mining and declared any business related to cryptocurrencies illegal. However, Hong Kong has allowed the formation of its own regulated digital asset market.