China’s Ministry of State Security stated on September 28 that cryptocurrency anonymity is an illusion, as every blockchain transaction can be traced back to an individual. Chinese intelligence identifies three main threats: money laundering from fraud proceeds, ransomware from cyberattacks, and notably the financing of spies by foreign services. The Bitfinex case illustrates this traceability: in 2016, 120,000 BTC were stolen from the platform, and the US Department of Justice recovered 94,000 of those bitcoins in February 2022, valued at 3.6 billion dollars. China strengthened its regulations on February 6, 2026, maintaining the ban on all crypto activity on its territory. In Europe, the DAC8 directive has required crypto platforms to transmit client data to tax authorities since January 1, 2026.
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