China Warns Virtual Assets Can Enable Espionage and Money Laundering

China's Ministry of State Security has issued a stern warning about the potential risks associated with virtual assets, or cryptocurrencies. The ministry stated that virtual assets could be exploited for espionage, money laundering, and cyberattacks.

The ministry expressed concerns about the anonymity of virtual assets, suggesting that foreign intelligence agencies could use this feature to recruit targets. This warning highlights the ongoing regulatory scrutiny faced by the crypto industry in China.

China has maintained a strict stance on cryptocurrencies, banning exchange operations in 2017 and effectively imposing a blanket ban on mining in 2021. Profit-making cryptocurrency-related businesses are currently considered illegal in mainland China.