China's Spy Agency Labels Cryptocurrencies Accomplices in Espionage

China's top intelligence and security agency has issued a stark warning on the risks of cryptocurrencies, emphasizing their role in crime and highlighting that transactions are not anonymous. The Ministry of State Security (MSS) described virtual currencies as 'accomplices' in espionage, facilitating money laundering activities and cyberattacks.

The MSS stated that overseas intelligence agencies try to recruit spies by claiming that crypto circulation is hard to verify. However, the agency dismissed this notion, saying that blockchains can fully retain transaction records and exchanges between crypto and fiat currencies make real identities difficult to hide.

Crypto transactions are not anonymous, according to the MSS, which considers them a 'false proposition' and an 'illusion.' The agency added that virtual assets are often used by 'overseas anti-China hostile forces' for activities that disrupt financial order and harm national security.

The warning from the MSS reiterates China's stance on crypto, with the country considering crypto businesses to be illegal. This latest development underscores the ongoing scrutiny of cryptocurrencies in China, where the government has repeatedly expressed concerns about their potential risks and negative impacts.