China’s prosecution system latest developments: On July 12, the top procuratorate’s official newspaper, Procuratorial Daily (《检察日报》), published an article proposing a framework for handling cryptocurrency money-laundering cases jointly put forward by the Xiangtan Yuhu District Procuratorate and legal research personnel from Xiangtan University.

Key recommendations:
• Where concealment tools such as mixers and privacy coins are used, and where no reasonable rebuttal can be provided, money-laundering intent may be presumed;
• Verifiable on-chain records plus reports from compliant blockchain analytics companies can serve as evidence;
• It is recommended to set up a national-level custody and disposal platform for virtual currencies involved in cases, and to liquidate through compliant channels such as targeted auctions.

The article analyzes the threefold difficulties facing current efforts—behavior characterization, evidence collection, and recovering and mitigating losses—and proposes a system-level response plan.

Also, according to Chainalysis data, in 2025, Chinese-language money-laundering networks processed about $16B in illegal funds, accounting for about 20% of global crypto laundering.

Source: Procuratorial Daily (Theoretical Edition) on the official website of the Supreme People’s Procuratorate (2026.7.12)