China Considers Broader Use of Crypto Evidence in Money Laundering Cases

China's Supreme People's Procuratorate has released a set of proposals aimed at reforming how cryptocurrency-related money laundering is investigated and prosecuted. The recommendations, published in the official Procuratorial Daily, include treating the use of mixers and privacy coins as presumptive evidence of criminal intent. The proposals also suggest establishing on-chain record authentication, shifting the burden of proof to defendants, and presuming laundering intent from conduct alone, such as large transactions through anonymous wallets.

The proposals highlight the challenges faced by Chinese authorities due to the pseudonymous and cross-border nature of virtual currencies, which complicate evidence collection and asset recovery. They advocate for adaptive rules for electronic data, clearer authorization for technical measures, and a national platform for managing seized crypto assets. Additionally, the proposals call for international cooperation to trace and freeze assets transferred abroad.

While these recommendations currently carry no legal force, they indicate a potential direction for China's legal framework regarding crypto enforcement. The move comes amid significant activity in Chinese-language laundering networks, which processed over $16 billion in 2025, and thousands of crypto-related laundering charges filed in recent years.

The impact on the crypto ecosystem could include increased legal risks for privacy-focused and cross-chain transactions within China, as authorities may more readily interpret certain behaviors as laundering indicators. However, the proposals' actual influence depends on future legislative and judicial adoption.