China State Security Ministry Calls Crypto an 'Accomplice' to Espionage, Warns on Anonymity
Summary
- China's Ministry of State Security issued a stark warning that virtual assets could be exploited for espionage, money laundering and cyberattacks.
- The ministry also raised concerns about the anonymity of virtual assets, saying foreign intelligence agencies could use that feature to recruit targets.
- China has maintained strict regulation of virtual asset exchanges and mining activities, and has classified profit-making virtual asset businesses as illegal after banning exchange operations in 2017 and mining in 2021.
Forecast Trend Report by Period
China's Ministry of State Security has issued a stark warning that virtual assets, or cryptocurrencies, can be exploited for espionage, money laundering and cyberattacks.
Cointelegraph reported on October 1 that the ministry recently said in a social media post that virtual assets could act as an "accomplice" to espionage. It said overseas anti-China forces are using cryptocurrencies to disrupt the financial order and undermine national security.
The ministry also challenged perceptions of crypto anonymity. It urged caution, saying foreign intelligence agencies could exploit the claim that cryptocurrency transactions are difficult to trace to recruit targets.
It added that authorities are monitoring the blockchain. The remarks appeared intended to highlight that major cryptocurrencies such as Bitcoin and Ether do not provide complete anonymity because transaction records remain on the blockchain.
China has maintained a hard-line regulatory stance on cryptocurrencies. It banned crypto exchange operations in 2017 and effectively imposed a blanket ban on mining in 2021. Profit-making cryptocurrency-related businesses are currently considered illegal in mainland China.
YM Lee
20min@bloomingbit.ioCrypto Chatterbox_ tlg@Bloomingbit_YMLEE