China’s Ministry of State Security said in a post published on its official WeChat account on Sept. 28 that the commonly cited features of virtual currencies — “anonymous transactions” and being “untraceable” — are only superficial. The ministry said blockchain systems are public and tamper-resistant by design, with every transaction permanently recorded on a public ledger.
According to the post, professional institutions can use on-chain data analysis and big-data matching methods to trace the real identities behind wallet addresses and reconstruct the full path of fund flows. The article also said virtual currencies have become an important tool in illegal activities including money laundering, cyberattacks, and overseas espionage and theft of secrets.
The post added that in February 2026, the People’s Bank of China and other departments reiterated that virtual currencies such as Bitcoin, Ether, and Tether cannot circulate as currency in the market. It said related business activities are classified as illegal financial activities and are strictly prohibited.
On Sept. 28, China’s Ministry of State Security said in a post on its official WeChat account that the supposed features of virtual currencies — 「匿名交易」 and 「不可追踪」 — are only superficial.
The article said blockchain technology is public and transparent, and its data cannot be tampered with. Every transaction is permanently recorded on a public ledger. Professional institutions can use on-chain data analysis and big-data comparison methods to trace the real identities behind wallet addresses and reconstruct the entire flow of funds.
The ministry said virtual currencies have become an important tool in illegal activities including money laundering, cyberattacks, and overseas espionage and theft of secrets.
It also said that in February 2026, the People’s Bank of China and multiple other departments reiterated that virtual currencies including Bitcoin, Ether, and Tether cannot be used as currency in market circulation. Related business activities are classified as illegal financial activities and are strictly prohibited.
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