China Warns Cryptocurrencies Used in Espionage and Cyberattacks
China's Ministry of State Security (MSS) has issued another stern warning about cryptocurrencies, stating they are not anonymous and can be used for espionage.
The MSS claims that foreign intelligence services are trying to convince individuals that cryptocurrency transactions are difficult to trace, but this is a 'false thesis' according to the agency. They point out that blockchain stores transaction history, making it harder to hide identities when converting cryptocurrencies to fiat money or using payment interfaces.
China's authorities view cryptocurrencies as a tool for money laundering, cyberattacks, and supporting intelligence activities. The MSS warns that 'overseas hostile anti-China forces' are seeking to disrupt financial order and harm national security by using virtual currencies.
The Chinese government has been tightening its grip on the cryptocurrency market since 2017, when ICOs were banned and crypto exchanges were closed. In 2021, Bitcoin mining was prohibited, and any activity related to cryptocurrencies is now considered illegal in mainland China.