<div id="readability-page-1"><div><div><p>China’s highest court has signaled a tougher stance against cryptocurrency-related crime, warning that individuals and organizations using digital assets to launder money or move funds illegally across borders could face harsher penalties.</p><p>he warning was delivered by Zhang Jun during the annual work report of the Supreme People’s Court of China to the National People’s Congress on March 9.</p><div><div><blockquote><div dir="ltr" lang="en"><p>China issued “Document No. 42”🇨🇳📄 </p><p>It repeats the crypto ban at home and sets strict rules for some offshore RWA token deals linked to China assets. Regulators say approvals/filings may be needed. #RWA#Tokenization#RealEstate#Regulation#China#Cryptopic.twitter.com/YCAVt5OkgM</p></div>— News Tokenizer.Estate (@NewsTokenizer) February 23, 2026</blockquote></div></div><p>The announcement reflects Beijing’s continuing effort to tighten enforcement against financial misconduct tied to emerging technologies. </p><p>Chinese courts are increasingly confronting cases involving technology-enabled crimes, including cryptocurrency-based money laundering, artificial intelligence–driven fraud and coordinated online harassment campaigns known locally as “human flesh search” incidents, in which internet users collectively expose individuals’ personal information online.</p><div><div><blockquote><p dir="ltr" lang="en">PBOC just ramped up its crypto ban, targeting stablecoins like USDT &amp; USDC! Meeting with 10+ agencies to aggressively crack down on money laundering &amp; capital outflow. Virtual currency activity remains illegal in mainland China. #ChinaCryptoBan#Stablecoin#PBOC#CryptoRegulation… pic.twitter.com/BW8F0tm1En</p>— CryptoniteUae (@CryptoniteUae) December 1, 2025</blockquote></div></div><p>Authorities said the growing prevalence of such crimes has prompted courts to strengthen their response to financial activities involving digital assets. </p><p>Although China encourages technological development in areas such as artificial intelligence and digital infrastructure, the Supreme People’s Court emphasized that innovation must remain within clearly defined legal boundaries. </p><p>The report noted that courts must carefully balance support for new technologies while ensuring that their use complies with existing legal and regulatory frameworks.</p><p>China has maintained one of the world’s strictest policies toward cryptocurrency since imposing a sweeping ban on crypto trading and mining in 2021. Despite the prohibition, officials say some criminal networks continue to exploit virtual currencies to bypass financial regulations and move money overseas. </p><div><div><blockquote><p dir="ltr" lang="en">CHINA HAS OFFICIALLY BANNED CRYPTOCURRENCY TRADING, MINING, AND RELATED SERVICES, CITING FINANCIAL RISKS, CAPITAL FLIGHT CONCERNS, AND ENVIRONMENTAL IMPACTS.</p>— RedboxGlobal India (@REDBOXINDIA) August 3, 2025</blockquote></div></div><p>The issue is particularly sensitive in China due to the country’s strict capital controls, which limit individuals to transferring the equivalent of $50,000 per year out of the country.</p><p>Recent data underscores the scale of the challenge facing authorities. According to a January report from blockchain analytics firm Chainalysis, Chinese-language money laundering networks processed roughly 20% of all illicit cryptocurrency transactions globally over the past five years. </p><p>Against this backdrop, the Supreme People’s Court reiterated that judicial authorities will intensify enforcement against crypto-related financial crimes, signaling that digital assets used to evade capital controls or facilitate illegal financial activity will remain a priority target for China’s courts.</p></div></div></div>

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<p>China’s Supreme Court has announced tougher penalties for cryptocurrency-related financial crimes, particularly targeting money laundering and illegal fund transfers. This warning was made during the annual work report to the National People’s Congress. The court emphasized the need for strict enforcement against financial misconduct linked to digital assets, while balancing technological innovation within legal boundaries. Despite a ban on crypto trading and mining since 2021, authorities report ongoing exploitation of virtual currencies by criminal networks. The court aims to intensify its response to such crimes, particularly those evading capital controls.</p>

- China's Supreme Court has announced a stricter approach to cryptocurrency-related crimes, emphasizing harsher penalties for money laundering and illegal fund transfers.  
- The court's report during the National People's Congress highlighted ongoing efforts to combat financial misconduct, including crimes facilitated by technology such as cryptocurrency-based money laundering.  
- With China maintaining its strict ban on crypto activities and enforcing capital controls, authorities aim to address the significant challenge posed by illicit cryptocurrency transactions linked to Chinese networks.

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China’s Supreme Court Warns Of Tougher Penalties For Crypto-Related Financial Crimes