China’s central bank wants to monitor NFTs and the Metaverse with its Anti-Money Laundering Tools as we can see more today in our latest cryptocurrency news today.
China’s crackdown on crypto expanded into the metaverse and NFT space as the executive at China’s central bank implied. Speaking at the national financial security summit, the director of the Anti-Money Laundering Unit at the PBOC, Gou Wenjun, pointed to the risks that were associated with leaving the new trends of crypto ecosystems like the metaverse and NFTs unregulated. He believes that people will still use these digital assets for privacy and wealth appreciation but they are also prone to be used for illicit purposes tax evasion and money laundering.
The innovation in the crypto world is rushing and therefore requires higher requirements in terms of risk supervision and governance according to the AML head, adding that the isolated nature of crypto, NFTs, and metaverse-based items from the real world can also be used as a money-laundering tool. Suggesting an objective insight into the evolution of virtual assets and the development of underlying technologies, Gou wants to clarify the division of supervisory responsibilities, improve the virtual assets transparency, and also explore using supervisory sandboxes to study and judge the nature of virtual assets.
China’s central bank wants to monitor NFTs with its money laundering tools so Gou said that China wants to enhance the monitoring and the analysis of the digital asset transaction as well. Banks and payment services provide fiat-to-crypto gateways that can ID senders and receivers with real names and also improve the ability to identify suspicious transactions. The PBOC said that improving the application of new technologies and establishing a new asset transaction traceability and tracking systems that will apply AI, machine learning as well as plenty of other technologies to label accounts that can transact with probed addresses.
Gou is open to improving the cooperation with the financial agencies across the world and forming an international coalition with countries that want to fight crypto-related crimes. He added:
“The Anti-Money Laundering Center will continue to deepen information sharing and co-investigation cooperation with 60 overseas financial intelligence agencies.”