"Two highs": The conversion of criminal proceeds through virtual asset transactions can be considered as "money laundering"

BlockBeats news, on August 19, according to the WeChat public account of the Supreme People's Procuratorate, on the morning of August 19, the Supreme People's Court and the Supreme People's Procuratorate jointly held a press conference and issued the "Interpretation on Several Issues Concerning the Application of Laws in Handling Criminal Cases of Money Laundering" (hereinafter referred to as the "Interpretation"). The "Interpretation" will come into effect on August 20, 2024.

The "Interpretation" has a total of 13 articles, and the main contents include: First, clarify the identification standards for the crimes of "self-laundering" and "other money laundering", as well as the review and identification standards for the subjective understanding of the crime of "other money laundering". Second, clarify the identification standards for "serious circumstances" of money laundering crimes. Third, clarify the seven specific circumstances of "covering up and concealing the source and nature of criminal proceeds and their proceeds by other methods". Fourth, clarify the principle of concurrent punishment for the crime of money laundering and the crime of concealing and concealing criminal proceeds, and the crime of proceeds from criminal proceeds. Fifth, clarify the standard for the amount of fines. Sixth, clarify the standard for lenient punishment.

The Interpretation clearly states that if the amount of money laundering is more than 5 million yuan, and there are multiple acts of money laundering; refuse to cooperate with the recovery of property, resulting in the inability to recover the stolen money and property; cause losses of more than 2.5 million yuan; or cause any other serious consequences, it shall be deemed as "serious circumstances".

The Interpretation lists "virtual asset" transactions as one of the methods of money laundering. It is clear that the transfer and conversion of criminal proceeds and their proceeds through "virtual asset" transactions and financial asset exchanges can be determined as "covering up and concealing the source and nature of criminal proceeds and their proceeds by other means" as stipulated in Article 191, Paragraph 1, Item 5 of the Criminal Law.

The "Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Application of Law in Handling Criminal Cases of Money Laundering" was adopted at the 1880th meeting of the Judicial Committee of the Supreme People's Court on March 20, 2023 and at the 28th meeting of the 14th Procuratorial Committee of the Supreme People's Procuratorate on March 29, 2024. It is hereby promulgated and will come into effect on August 20, 2024.