China’s Communist Party has introduced a new resolution targeting corruption linked to cryptocurrency, blockchain activity, and illegal cross-border financial transfers. The initiative, appro
China’s Communist Party has introduced a new resolution targeting corruption linked to cryptocurrency, blockchain activity, and illegal cross-border financial transfers. The initiative, approved in late October and published by Xinhua in early November, aims to step up enforcement while maintaining existing restrictions on digital asset trading and payments.
The Communist Party’s latest resolution highlights the use of cryptocurrency as a tool for hiding bribes or moving unlawfully obtained funds outside China. Beijing intends to increase scrutiny of blockchain transactions, online activity, and cross-border payments to uncover corrupt practices involving digital assets.
Authorities have pledged closer cooperation with international partners on cross-border corruption and asset recovery efforts. In a recent case, Thai police arrested a Chinese national accused of laundering over $74 million via cryptocurrency and traditional bank accounts, underscoring the cross-border challenges presented by digital assets.
Since banning cryptocurrency trading services in 2021, China has periodically strengthened its measures against illegal activity involving virtual currencies. In February 2026, additional restrictions addressed stablecoins and unauthorized tokenized financial products, signaling the government’s ongoing concerns about loopholes in the digital finance ecosystem.
Recent court cases reflect these priorities. The Supreme People’s Court has launched studies into legal standards for virtual currency cases and investigations tied to cross-border fund flows. This is part of a broader legal push to track and prevent financial misconduct involving digital assets.
One example cited by state media involved Yao Qian, previously the lead at the central bank’s digital currency research institute. Reports claimed Yao accepted bribes in cryptocurrency and cash via wallets managed by employees, with related companies seeking exchange listings. The investigation demonstrated the evolving risks tied to digital payments in official corruption.
Mini dictionary: Supreme People’s Court – This is the highest judicial body in China, overseeing interpretation and application of law, and deciding on significant national cases, including those involving digital assets.
Under the new measures, Chinese authorities prioritize closer scrutiny of blockchain, cryptocurrency, and cross-border activity used to conceal financial crimes, while also expanding international cooperation on asset recovery in complex digital investigations.
The resolution also puts stricter rules in place for oversight across China’s technology sector. Internet companies and fast-growing digital businesses must now integrate party-building processes into decision-making and daily management. Regulatory agencies as well as local authorities will take responsibility for intensified supervision over these enterprises.
Disciplinary agencies are directed to use advanced digital inspection systems and integrated government data platforms. These tools are designed to assist investigators in tracing unusual transactions and identifying relationships between officials and private businesses.
Local officials have already piloted AI-based tools in anti-corruption efforts. In Zhengzhou, artificial intelligence helped detect signs of collusion and price manipulation in deals involving state-owned enterprises. In the city of Suifenhe, government data and DeepSeek AI models were used to uncover social security fraud cases.
Mini dictionary: DeepSeek – DeepSeek is an advanced artificial intelligence research platform used in China for natural language processing and data analysis, increasingly adopted in fraud detection and compliance monitoring.
While these tools support the campaign against corruption, the government also continues independent blockchain development for government and industry purposes. Policy documents released in October outlined support for blockchain, artificial intelligence, and quantum computing, but these initiatives remain separate from China’s ban on crypto trading services.
Blockchain tracing has also become a feature in international investigations, such as inquiries into cryptocurrency laundering linked to North Korean hacker groups. In China, authorities view digital financial networks as a growing part of anti-corruption enforcement.
Investigators in China are leveraging AI and integrated digital systems to trace suspicious transactions, helping to expose hidden relationships between officials and businesses as part of broader anti-corruption strategies.
The Communist Party’s resolution directs disciplinary bodies to increase cross-border cooperation and monitor new forms of online financial misconduct. It also expands party oversight throughout tech and platform-based sectors, as well as evolving gig economy workplaces.
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