China pushes to ‘severely punish’ crypto money laundering, assisted driving violations

China’s Supreme People’s Court has revealed its plans to continue actively pursuing crypto money laundering, cyber violence and misuse of assisted driving features. 

The President of China’s Supreme People’s Court recently reported a 158.5% increase in tried cybercrime cases over the past five years, which is a part of a nationally coordinated effort to tackle violations committed using emerging technologies like AI and digital assets. 

How have China’s laws adapted to AI? 

During the fourth session of the 14th National People’s Congress (NPC) at the Great Hall of the People in Beijing, Zhang Jun, the President of the Supreme People’s Court, delivered a comprehensive work report on how China’s judicial system handles incidents when advanced technology and the law intersect. 

The report revealed that in the past five years, Chinese courts have tried 9,326 cases involving crimes that endanger network security. This involved 22,000 individuals and represents a sharp increase of 158.5% in the number of cases compared to the previous five-year period. 

The court has stated that it will strictly punish crimes such as money laundering and foreign exchange evasion conducted through virtual currencies. 

Beyond money laundering, the Supreme People’s Court has clarified that drivers are fully responsible for the safe operation of their vehicles, regardless of whether or not they are using assisted driving features.

Drivers have recently been abusing the assisted driving features, engaging in dangerous acts like sleeping or using mobile phones while their vehicles are in motion. Some have even tampered with safety mechanisms to trick the vehicle into thinking a human is actively monitoring the steering wheel.

In 2025, China’s automobile production and sales both exceeded 34 million units. Many of these units are New Energy Vehicles (NEVs) that are equipped with driving assistance systems. 

The court cited a specific case involving a defendant named Wang who, after consuming alcohol, activated his vehicle’s assisted driving function. The car’s safety sensors usually require the driver to keep their hands on the wheel, but Wang used an illegally installed device to trick the machine before moving to the passenger seat and falling asleep while the car was moving. The car eventually stopped near its destination, but it blocked the road, and passersby had to call the police.

Wang was convicted of dangerous driving. He was sentenced to one month and 15 days of criminal detention and ordered to pay a fine of 4,000 yuan (approximately $580).

Why is the SPC focusing on virtual currency and cyber violence?

The report points out that virtual currency has become a primary tool for individuals attempting to move money out of the country illegally or hide the proceeds of crime. The SPC hopes that singling out crypto-based money laundering will deter these bad actors.

The report also focused on “cyber violence” and the protection of personal privacy. The court noted that it is actively punishing online rumors and pyramid schemes. 

In one notable example, two young individuals were convicted for “human flesh searching”—a term used for doxxing or maliciously broadcasting a person’s private information online to incite harassment. 

The court’s focus on cyberspace security is intended to create a comprehensive management of the internet that ensures that digital interactions do not result in real-world harm.

There have been safety concerns regarding retractable handles on EVs, as they can fail during an accident, especially if the vehicle loses power. If the handles do not pop out as they are designed to, rescuers cannot open the doors from the outside to save trapped passengers. 

The government has announced that starting January 1, 2027, retractable handles on EVs are banned.