China’s 2024 Virtual Currency Money Laundering Crackdown: 3,032 Prosecutions and Insights into Youth Involvement

COINOTAG News, citing Caixin, reports that in 2024 Chinese authorities intensified enforcement against illicit activity conducted with virtual currency. The crackdown led to the prosecution of 3,032 individuals involved in money laundering schemes that used virtual currency to move criminal proceeds. In many cases, defendants demonstrated limited legal awareness and were unwitting participants. The report highlights the tension between cryptocurrency regulation and law enforcement, underscoring the need for robust AML controls and transparent transaction monitoring to deter crime in digital assets.

An independent analysis of 283 court judgments on money laundering involving digital assets found that criminal networks frequently relied on marginalized youth with low socioeconomic status, with pronounced regional clustering. Findings indicate that the cohort largely had middle or high school education, signaling a vulnerability hotspot for exploitation. The study calls for targeted prevention measures, enhanced public awareness, and strengthened onshore supervision to curb crime linked to virtual currency activity.