China’s central bank wants to monitor NFT and Metaverse
China’s crypto penetration has expanded to the Metaverse and NFT space, as commented by executives at China’s central bank.
PBOC’s anti-money laundering unit director Gou Wenjun pointed out the risks associated with the crypto ecosystem adopting new trends such as metaverse and unregulated NFT at the national financial security summit. He believes that people will continue to use these digital assets for privacy and value creation, but they are also vulnerable to illicit uses for tax evasion and money laundering.
According to the head of AML, innovations in the crypto world are happening at a rapid pace and therefore require higher requirements for risk management and monitoring, which can also be used as a money laundering instrument. Gou proposes an objective view of the development of virtual assets and the development of underlying technologies and wants to clarify the division of responsibility for custody, improve the transparency of virtual assets and also the use of custody sandboxes to research and assess the nature of virtual assets.
China’s central bank plans to monitor NFTs with its money laundering tools, Gou said China also wants to step up monitoring and analysis of digital asset transactions. Banks and payment services offer fiat-to-crypto gateways that can identify senders and recipients by their real names and improve their ability to identify suspicious transactions. The PBOC said improving the introduction of new technology and establishing a new system to track and trace asset transactions will use AI, machine learning and other technologies to tag accounts.
Gou is ready to improve cooperation with financial authorities around the world and form an international alliance with countries that want to fight crypto-crime. He added:
“The Anti-Money Laundering Center will further strengthen the exchange of information and joint investigative cooperation with 60 foreign financial intelligence services.”