Ministry of State Security Document Reveals the "Anonymity Myth" of Virtual Currency: Blockchain Leaves Full Records, On-Chain Identities Are Finally Traceable
TechFlow reported on September 28, citing an article published on the WeChat official account of the Ministry of State Security, that the so-called features of cryptocurrencies—"anonymous transactions" and "untraceability"—are merely superficial. Blockchain technology possesses core characteristics such as openness, transparency, and data immutability. All transactions are permanently recorded on the "public ledger," and professional agencies can trace the real identities behind wallet addresses and reconstruct the complete process of fund flows through on-chain data analysis and big data comparison.
The article points out that cryptocurrencies have become important tools for illegal activities such as money laundering, cyberattacks, and espionage by foreign entities. In February 2026, the People's Bank of China and several other departments reiterated that cryptocurrencies such as Bitcoin, Ethereum, and Tether must not circulate as currency in the market, and related business activities constitute illegal financial operations that are strictly prohibited.
