China's top prosecutors call for stronger crypto money laundering probes

China's Supreme People's Procuratorate (SPP), the country's highest prosecutorial body, has called for strengthening investigations into cryptocurrency-related money laundering, The Block reported, citing a paper published on the agency's official website. The paper argued that China's current legal framework has not kept pace with the development of digital asset technology, creating difficulties in investigating money laundering, collecting evidence, and recovering stolen assets. It highlighted the challenges in tracing transactions that use mixers, privacy coins, and decentralized exchanges, stating that existing investigative techniques have proven inadequate for securing evidence. The outlet noted that this stance contrasts with that of the U.S. Treasury Department, which issued a report acknowledging the functions of privacy-focused cryptocurrencies like Tornado Cash (TORN), Monero (XMR), and Zcash (ZEC). China continues to strictly prohibit cryptocurrency trading.