Chinese Prosecutors Suggest Presumptive Guilt for Crypto Laundering

Chinese prosecutors are proposing a framework for prosecuting cryptocurrency money laundering, which includes presuming criminal intent when suspects use coin mixers or privacy coins without providing 'reasonable counter-evidence.'

The article, published in the Procuratorate Daily, suggests that courts should treat verifiable on-chain records and analytics-firm reports as admissible evidence. It also proposes a 'double investigation of one case' rule to screen every underlying crime for laundering and require investigators to map the flow of any cryptocurrency involved.

China's central bank and nine other regulators recently issued a joint notice banning unapproved yuan-linked stablecoin issuance, classifying most real-world asset tokenization as illegal. The notice frames virtual currencies, stablecoins, and tokenized assets as sources of systemic financial risk.