China expands anti-corruption drive to crypto, cross-border funds
China’s ruling Communist Party has added virtual currencies, blockchain and cross-border money transfers to its anti-corruption campaign, while existing restrictions on crypto businesses remain in place.
China’s ruling Communist Party has broadened its anti-corruption campaign to include virtual currencies, blockchain, internet-based financial activity and cross-border money transfers. The directive targets hidden assets and illegal payments linked to public officials.
The directive was adopted during the party’s Fifth Plenary Session on Oct. 29, and its full text was published Nov. 1. It calls for stronger action against corruption involving digital assets, money moved across borders and arrangements that conceal property ownership or future income.
The document does not introduce a new ban on crypto trading. It places virtual currencies and blockchain within a wider campaign against financial misconduct and violations of party discipline.
Chinese authorities have raised concerns that cryptocurrencies can move across borders without traditional banks. Although transactions are recorded on public blockchains, identifying wallet owners and tracing the source of funds can require extensive investigation.
The directive highlights the possible use of digital assets in bribery, illegal transfers and wealth concealment. It calls for closer scrutiny of proxy arrangements, in which assets or expected profits are registered in another person’s name. Such arrangements can hide financial interests linked to public officials.
Crypto transactions involving Chinese companies and cross-border payments could face closer examination when authorities suspect corruption. Exchanges and other digital-asset service providers could face pressure to strengthen compliance procedures and cooperate with investigations.
The directive follows China’s existing restrictions on digital assets. In September 2021, Chinese authorities prohibited crypto-related business operations and closed domestic trading platforms and mining facilities.
On Feb. 6, 2026, eight government departments issued a joint warning reaffirming that crypto businesses remain illegal in China. The warning addressed unauthorized offshore yuan stablecoins and imposed tighter restrictions on the tokenization of physical assets, including real estate and commodities.
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