MSS Warns Crypto Transactions Are Not Permanently Anonymous in China

China's Ministry of State Security (MSS) has warned that cryptocurrency transactions are not permanently anonymous, citing blockchain records and digital data as tools for tracing users.

The MSS stated that wallet addresses may temporarily obscure connections between an address and its user, but do not provide permanent identity concealment.

Additionally, fiat-to-crypto and crypto-to-crypto conversions can leave digital traces, including device information and network IP addresses.

The statement described virtual currencies as potential tools for money laundering, cyberattacks, espionage, financial-order disruption, and threats to national security.