Key Highlights:
- Courts to crack down on organized telecom fraud, underground banks, and crypto-linked money laundering networks.
- Stronger property penalties and compensation rules aim to recover funds and deter repeat offenders.
- Judicial reforms and new interpretations will guide cases in securities, private equity, and digital asset disputes.
China’s Supreme Court has amped up efforts to handle fraud and safeguard the financial system for pushing against crimes involving cryptos and underground banking networks.
At a recent press briefing, Wang Bin, president of the Third Criminal Division of the Supreme People’s Court, said courts will intensify enforcement against organized groups linked to telecom and internet fraud. The focus will also include those who finance scams, arrange illegal cross-border operations, or provide protection to criminal networks. It will also include those who launder money using virtual currencies or underground banking channels.
China Cracks Down On Crypto Money Laundering
The announcement shares that officials are now looking beyond fraud schemes themselves and targeting the financial infrastructure that sustains them. Courts are also expected to increase property penalties on offenders. The regulators aim to cut off profits generated through fraud and deter repeat offences.
Wang said individuals involved in so-called card fraud schemes will be encouraged to return illicit funds and compensate victims. Those who cooperate may receive leniency. At the same time, offenders who have the means to compensate but refuse to do so will face stricter punishment.
According to local media reports, the court also plans to strengthen research into emerging financial disputes, especially those linked to private equity and crypto assets. It said new judicial interpretations will be issued to guide civil compensation claims in insider trading and market manipulation cases. These measures are meant to improve the legal framework for securities markets and ensure stronger investor protection.
Officials stressed that the financial system remains central to national economic stability. Wang Chuang, chief judge of the court’s Second Civil Division, said effective dispute resolution is necessary to support long-term growth and maintain confidence in financial markets.
Court data reflects the scale of financial litigation in China. In 2025, more than 2.7 million financial cases were handled nationwide, a slight increase from the previous year. Authorities said the quality of case handling has improved, while services linked to technology finance, digital finance, green finance, and pension finance have been expanded.
China has built a specialized judicial structure to manage these cases. There are 3 financial courts, 8 financial tribunals, and more than 300 dedicated panels across the country. These bodies focus on disputes involving securities, insurance, banking, and bankruptcy.
In major cities such as Beijing, Shanghai, and Shenzhen, courts have stepped up protections for financial technology companies. At the same time, targeted action has been taken in areas such as pension finance to address illegal activities affecting vulnerable groups.
The court also highlighted trends in case volumes. In 2025, it handled 27,000 securities disputes and more than 392,000 insurance cases, both rising sharply from the previous year. Nearly 45,000 bankruptcy cases were processed, showing a steady increase in restructuring and liquidation activity.
Judges say bankruptcy proceedings are essential for economic stability. These cases often involve employment, taxation, and credit restoration, along with the distribution of assets. The court is pushing for closer coordination between courts, regulators, and social agencies to manage these complex cases more effectively.
The judiciary is also expanding its capacity. Six new bankruptcy courts were approved in 2025, bringing the national total to 24 and extending coverage to most major cities.
Alongside these judicial measures, financial regulators are maintaining a strict stance on cryptocurrencies. Authorities recently reiterated a ban on unauthorized offshore issuance of yuan-pegged stablecoins. They also said any tokens backed by Chinese onshore assets will be subject to strict vetting.
Also Read: China Blocks Offshore Issuance of Yuan-Backed Stablecoins
Source: https://www.cryptonewsz.com/chinas-supreme-court-crypto-money-laundering/
