Recently, I’ve noticed a very noteworthy policy signal worth discussing. In March, the Supreme Court’s work report once again highlighted issues of virtual currency money laundering and capital flight, and this time the wording was more direct than before—explicitly stating the need to punish these new types of crimes according to the law and to jointly prevent illegal cross-border capital transfers.

Honestly, this isn’t the first time. From policy documents issued by multiple departments of the central bank, to specific rulings by local courts, and now with the repeated emphasis at the two sessions, it’s clear that the government’s stance on illegal activities related to virtual currencies has remained firm. By 2025, the Supreme Court has handled over 36 million cases, including ongoing efforts to address virtual currency money laundering cases. As we enter the first year of the "14th Five-Year Plan," national public security economic investigation departments have already prioritized cracking down on illegal financial crimes involving virtual currencies, indicating a coordinated effort across law enforcement, judiciary, and regulatory agencies.

What’s even more concerning is that money laundering methods are continuously evolving. The simple virtual currency transfers of the early days are now outdated. They’ve developed into complex operations involving DEXs, mixers, and cross-chain bridges, combined with new concepts like NFTs, GameFi, and RWA, greatly increasing their concealment. There’s also a particularly dangerous pattern—using schemes like "running points," "investment on behalf," or "U收代" (proxy collection)—to lure ordinary users into acting as "tools," turning many into unwitting accomplices in money laundering. Judgments for such cases have already begun to surface, with harsher sentencing.

From a societal harm perspective, once virtual currencies are used for money laundering, the funds are almost impossible to recover. These funds often flow overseas, making investigation difficult, and the financial losses for individuals and institutions are essentially irreparable. Moreover, virtual currencies have become a "toolbox" for various crimes—telecom fraud, online gambling, illegal fundraising—all using virtual currencies to transfer funds, amplifying societal risks.

My advice is that both individuals and institutions should remain highly vigilant against such activities. Don’t fall for temptations like "low risk, high return" or "instant collection and settlement" schemes—these are almost always traps. Any request for your private keys, mnemonic phrases, bank cards, or asking you to proxy send or receive virtual currencies should be outright rejected. Virtual currencies themselves are not problematic, but using them for illegal fund transfers is now clearly a criminal offense, no longer a gray area.

If you discover suspicious virtual currency transactions or scam clues, it’s best to report them directly to the public security authorities. While virtual currencies seem discreet, the entire transaction chain is traceable, and risks are predictable. Responsibility will definitely be pursued. This trend will not change; it will only become more stringent.