Chinese Banks Enhance Digital Yuan Security to Combat Money Laundering


Chinese financial institutions have announced their commitment to combatting digital yuan-themed money laundering and identity theft schemes by implementing enhanced security measures. According to reports from the Beijing Business Daily, several banks have already begun taking steps to adhere to the updated guidelines set forth by the central bank regarding the use of the digital currency.

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The new security protocols are specifically designed to address concerns related to anti-money laundering practices and the prevention of terrorist financing activities. By proactively implementing these measures, Chinese banks aim to safeguard the integrity of the digital yuan ecosystem and protect the interests of their customers. This proactive approach underscores the importance of maintaining a secure and trustworthy financial system in the digital age.

Chinese Banks Strengthen Digital Yuan Security

The consortium of financial institutions comprises the government-owned Postal Savings Bank of China. Wallet holders will now be mandated to provide “verification” and validate their wallets with personal information. This will encompass details such as customers’ names, gender, nationality, occupation, residential or work addresses, and contact telephone numbers. Customers of the bank will be required to authenticate their identity using official identification documents. The banks will also conduct verifications to confirm the validity of these documents.

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The consortium of financial institutions comprises the government-owned Postal Savings Bank of China, which has implemented a new policy mandating wallet holder to undergo a verification process and authenticate their wallets with personal information.

This verification process entails providing details such as customers’ names, gender, nationality, occupation, residential or work addresses, and contact telephone numbers.

In order to verify their identity, customers of the bank will be required to present identity documents. Additionally, the banks will conduct thorough checks to validate the authenticity of these documents.

The bank has clarified that if customer identity information is deemed “incomplete” or if proof of ID documents are expired, the bank will initiate necessary steps.

If customers do not take action within 90 days, the bank will implement measures, such as reducing transaction limits and limiting financial services on CBDC wallets.


The Postal Savings Bank of China has stated that customers have the option to remove these restrictions by providing their information through the digital yuan app or mobile banking platforms.

Additionally, customers can also provide their data and ID documentation at bank branches across the country.

A customer, who chose to remain anonymous, expressed that the “digital yuan” platform should verify the true identity of wallet users during transactions to enhance security measures.

This approach may spark concerns regarding privacy, as the People’s Bank of China has emphasized incorporating features to safeguard anonymity in their CBDC.

Despite this, financial experts are now highlighting the significance of striking a balance between protecting user privacy and managing risks, particularly in the context of anonymous CBDC wallets.

Theft Attacks Digital Yuan Funds

According to a report from the media outlet, a banking industry specialist mentioned that the Postal Savings Bank had taken action in response to an increase in criminal activities targeting the digital yuan.

The specialist highlighted that criminals were specifically targeting the digital yuan and engaging in deceptive practices to attract unsuspecting financial consumers.


Industry experts in the financial sector anticipate that other Chinese commercial banks will also take similar measures to address the growing issue.

Recent reports from police in Inner Mongolia revealed that residents fell victim to scams involving digital yuan, resulting in significant financial losses.

The experts emphasized that the Postal Savings Bank’s decision was primarily focused on preventing criminals from exploiting CBDC wallets for illicit activities.

Mobile Network Providers Issue Alerts

Towards the end of June, Hunan Mobile, a major telecommunications company, cautioned its customers about an increase in scams related to digital yuan.

The company disclosed that scammers were pretending to be bank representatives and setting up fraudulent customer service centers to pilfer digital yuan funds.

According to reports from the Changsha Evening News, the company highlighted that scammers were distributing deceptive links, fake QR codes, and text messages.

Hunan Mobile emphasized that these activities were all part of phishing schemes, with fraudsters attempting to illicitly obtain customer information.

Furthermore, the company mentioned that some criminals were utilizing stolen information to create digital yuan wallets and engage in criminal activities.

Hunan Mobile announced its collaboration with law enforcement to crackdown on multiple groups involved in suspected digital yuan fraud.

The company disclosed that they assisted authorities in pinpointing 128 individual fraudsters and dismantling 13 organized criminal networks. They emphasized the importance of vigilance against such illicit activities.CRYPTOCASTER® - DECENTRALIZED FREEDOM!


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