China's Ministry of State Security said cryptocurrency transactions are not fully anonymous and can support investigations into money laundering, cyberattacks and espionage. The ministry said blockchain records preserve transaction histories, while exchanges, fiat conversions and payment services can create links between wallet addresses and real identities. It warned that overseas intelligence services could promote crypto payments to prospective recruits as difficult to trace, though the agency said that confidence is misplaced. The warning adds national-security concerns to mainland China's longstanding restrictions on cryptocurrency businesses, which authorities have said are illegal. China banned initial coin offerings and moved against crypto exchanges in 2017, then prohibited Bitcoin mining and cryptocurrency-related business activities four years later. In February 2026, the People's Bank of China and seven other agencies reaffirmed virtual-currency restrictions, including rules covering real-world asset tokenisation. Hong Kong continues to develop a regulated digital-asset market under a different approach.