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China proposes treating crypto mixers and privacy coins as laundering intent
The proposals from China’s Supreme People’s Procuratorate would also change evidence handling, including shifting the burden of proof after transaction-chain analysis is submitted.
China’s Supreme People’s Procuratorate has published recommendations aimed at making cryptocurrency-related money laundering cases easier to investigate and prosecute, according to Bitcoin Magazine. The proposal would treat the use of mixers and privacy coins as presumptive evidence of criminal intent.
The recommendations focus on how China can handle a mismatch between existing law and crypto’s technical design, which is decentralized, pseudonymous, and cross-border. The authors argue that current frameworks have created problems in defining offenses, collecting evidence, and recovering stolen assets.
Bitcoin Magazine reports the prosecutors highlighted a gap between China’s Anti-Money Laundering Law and Criminal Law provisions, noting that Article 191 limits laundering charges to seven categories. They say many crypto cases effectively fall under Article 312, which they describe as a catch-all for concealing criminal proceeds.
Among the proposals, the Procuratorate suggests using “blockchain self-authentication,” treating on-chain records from public block explorers as reliable when hash values match. It also proposes shifting the burden of proof, where once prosecutors submit a transaction-chain analysis report, the defense would need to disprove it, and allowing courts to presume laundering intent based on conduct alone.
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