MSS Warns Crypto Transactions Can Be Traced
China's Ministry of State Security (MSS) has warned that cryptocurrency transactions can be traced through blockchain records and related financial channels, debunking claims of complete anonymity. The agency stated that blockchain networks preserve transaction histories, while crypto exchanges and payment systems can help identify users.
The MSS warning reinforced China's existing position that cryptocurrency-related businesses remain illegal in mainland China. The latest remarks added a national-security focus to the country's broader crypto-regulation framework, which has continued through coordinated actions from financial and security agencies.
In February, the People's Bank of China and seven other government bodies issued a joint notice on virtual currency activities, stating that speculative activity in virtual currency disrupted the economic and financial order. The move expanded regulatory attention toward tokenized real-world assets, showing that China's oversight extended beyond traditional cryptocurrency activities.