Mon, September 16, 2024 at 11:43

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I want to discuss recent developments in China's legislative efforts to combat money laundering, particularly in relation to new financial technologies like cryptocurrencies.

  • 
• Annie

  • Oh, that sounds interesting!😊 What exactly are they planning to change?

  
• 

  Kang-hoon

  • On September 9, the Legislative Affairs Commission announced that they are debating revisions to the country's anti-money laundering law.

  • These changes are aimed at addressing the risks posed by new financial technologies, including cryptocurrencies.

• Annie

  • I see.

  • Why do they feel the need to revise the law now?

  
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• 

  Kang-hoon

  • The rapid development of new technologies has made detecting and preventing money laundering more challenging.

  • Wang Xiang, a spokesperson for the commission, mentioned that the amended law would enhance the ways of identifying and assessing money laundering connected with these emerging technologies.

• Annie

  • That makes sense.

  • So, what specific changes are they proposing?

  
• 

  Kang-hoon

  • The revisions will require companies to identify and mitigate risks brought on by innovative models, including digital currencies.

  • The second reading of the draft revision will be conducted this week before the Standing Committee of the National People's Congress.

• Annie

  • Interesting.

  • Are there any new offenses being added under this revision?

  
• 

  Kang-hoon

  • Yes, the revision expands the list of predicate offenses, which are criminal activities associated with money laundering.

  • This includes a catch-all provision in accordance with China's Criminal Law to better define the scope of anti-money laundering activities.

• Annie

  • Wow, they are really covering all bases.

  • How does this align with international standards?

  
• 

  Kang-hoon

  • The changes aim to align China's anti-money laundering framework with international standards.

  • This is crucial as China faces more international scrutiny and needs to improve its fight against unlawful activities involving cryptocurrencies.

• Annie

  • That sounds like a big step.

  • What role does China's Central Bank play in this?

  
• 

  Kang-hoon

  • The current draft revision encourages the central bank and related authorities to make provisions for controlling new types of money laundering risks.

  • Lenders will also need to assess and mitigate the risks from new financial products.

• Annie

  • I see.

  • Have there been any recent actions taken by China to curb money laundering?

  
• 

  Kang-hoon

  • Yes, just last month, the Supreme People's Court and the Supreme People's Procuratorate listed cryptocurrencies, online game coins, and tipping during live streams as possible money laundering tools.

  • Recently, authorities in Beijing busted a large money-laundering syndicate involved in virtual currencies.

• Annie

  • Wow, it seems like they're taking this very seriously.

  • Do you think these changes will have a positive impact on the market?

  
• 

  Kang-hoon

  • In the short term, I believe these changes could be seen as a negative development for the market.

  • 

  • Increased regulation often leads to uncertainty and could potentially stifle innovation in the fintech sector.

• Annie

  • That's a bit concerning.

  • So, you think this is more of a bad news for the market?

  
• 

  Kang-hoon

  • Yes, in my opinion, this is more of a negative development.

  • The increased regulatory scrutiny and potential for stricter controls could create a challenging environment for businesses operating in the fintech and cryptocurrency sectors.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.