China's Prosecutors Issue Guidance on Cryptocurrency Money Laundering Cases on June 20

According to China's Procuratorial Office's WeChat official account, the nation's prosecutors issued guidance on handling cryptocurrency money laundering cases on June 20, recommending wallet addresses as a breakthrough point for investigation. The guidance advises using blockchain technology to analyze on-chain data characteristics and fund flow paths to identify money laundering activities conducted via cryptocurrency.

The prosecutors recommend establishing an evidence collection framework centered on two core elements: identity association and transaction association. Authorities should strengthen cross-border evidence gathering while prioritizing domestic investigation, and apply unified standards for coordinating with third parties including exchanges, wallet service providers, and payment channels to establish the connection between wallet addresses, accounts, and natural persons.