China Warns Crypto Anonymity 'Illusion' Due to Blockchain Traceability

China's Ministry of State Security (MSS) has reinforced its stance on crypto regulation by warning that cryptocurrency transactions can be traced through blockchain records and related financial channels.

The agency stated that blockchain networks preserve transaction histories, making it possible to identify users involved in digital asset activity.

Crypto exchanges and payment systems can help authorities track user identities, further emphasizing the permanence of blockchain records.

China's existing position remains unchanged: cryptocurrency-related businesses are illegal in mainland China.