Chinese prosecutors have proposed changing the way money laundering cases involving cryptocurrencies are investigated, according to the local Prosecutors’ Daily newspaper. The authors of the proposal argue that current legislation and judicial practice fail to adequately address the specific nature of such offenses, making investigations and legal classification more difficult.
“Many cases involving cryptocurrencies are currently investigated under broader laws covering the concealment of criminal proceeds, even though they should instead be prosecuted as money laundering,” the article states.
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The authors believe that the use of transaction-obfuscation services, anonymous accounts, or other suspicious methods should be considered when determining criminal intent. If a cryptocurrency holder cannot provide a satisfactory explanation for the origin of the funds and the nature of the transactions, that could become grounds for criminal charges.
Effectively, prosecutors are proposing an approach that closely resembles a presumption of guilt. If such warning signs are present, the burden would fall on the cryptocurrency holder to explain where the funds came from and prove that the transactions were not connected to money laundering.
In addition, law enforcement officials propose recognizing blockchain data as standalone evidence, provided it can be independently verified. They also want blockchain analytics reports to be admissible in criminal cases alongside other forms of evidence.
The authors of the article also highlighted the issue of confiscated crypto assets, proposing the creation of a unified state system for handling seized cryptocurrency. They argue that, because of the current restrictions, authorities have yet to establish a mechanism for storing, valuing, and liquidating confiscated cryptocurrency.