China Warns of Crypto Risks as Singapore Sees Surging Growth
China's Ministry of State Security (MSS) has increased its warnings about the security risks associated with cryptocurrencies. In a social-media post, the MSS stated that cryptocurrencies can facilitate money laundering and cyberattacks, describing them as 'accomplices' in espionage.
The MSS also claimed that 'overseas anti-China hostile forces' use crypto to disrupt financial order and harm national security. The ministry suggested that intelligence efforts could include discouraging recruits' concerns by implying that virtual-currency activity is difficult to trace-an assertion the MSS appears to challenge directly.
China has previously imposed bans on crypto exchanges in 2017 and mining in 2021, and it has declared crypto businesses illegal. Market participants take note: when regulators emphasize that crypto is not truly anonymous, compliance expectations tend to rise, even in jurisdictions that still permit limited crypto activity.
In contrast, Singapore's crypto market appears to be gaining traction. Chainalysis data shows Singapore's crypto activity increased 55.4% to $284 billion in the year ended June 2026, making it the largest crypto economy in Central and Southeast Asia and Oceania (CSAO).