Chinese regulatory developments have taken another step forward. News has emerged that the Public Security Bureau has announced the サイバー犯罪防止法案 and has begun soliciting public comments.

The aim of this law is clear: to thoroughly restrict the movement of funds related to illegal activities involving cryptocurrencies. Specifically, it includes provisions that directly prohibit individuals and organizations from intentionally concealing, transferring, or trading cryptocurrencies associated with criminal activities.

What’s more noteworthy is that providing financial services using cryptocurrencies identified as originating from criminal activities will also be banned. In other words, platforms and services that facilitate the circulation of cryptocurrencies derived from illegal activities will also be subject to regulation.

China has maintained a strict stance against cryptocurrencies so far, but this law appears to aim for a more concrete and enforceable regulatory framework. Market participants should keep a close eye on this trend of tightening regulations in China.