China Warns Cryptocurrency Users: Anonymity Is an Illusion

China's Ministry of State Security has issued a warning about the use of cryptocurrency, stating that digital assets are being used for cyberattacks and anti-China activities.

The ministry claimed that some people harbor a misconception that receiving overseas funds via cryptocurrency can achieve 'anonymous transactions' and evade legal sanctions by exploiting the feature of being 'untraceable.'

However, the ministry stated that 'cryptocurrency is not extraterritorial, and the so-called 'anonymity' is merely an appearance.'

The Ministry of State Security warned that cryptocurrency carries risks of financial loss and is frequently used by overseas anti-China hostile forces and illegal elements in various criminal acts.

In a statement, 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.