Ministry of State Security official public account states that virtual currency transactions can be traced across the full chain

AT A GLANCE

According to BlockBeats, China's Ministry of State Security stated that virtual currencies are not truly anonymous and that transaction traces can be used for full-chain tracing.

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China's Ministry of State Security: The “anonymity” of virtual currencies is a false proposition; transaction records provide a basis for full-chain tracing

BlockBeats reported,September 28 China's Ministry of State Security official public account published an article today titled “Virtual Currency Crimes Cannot Be Traced? Think Again!”, stating that criminals heavily promote virtual currencies as offering “anonymous transactions” and being “untraceable” as a marketing gimmick. However, from a technical perspective, blockchain itself has core characteristics including openness and transparency and the immutability of on-chain data; the so-called “anonymity” of virtual currencies is fundamentally a false proposition. At the same time, blockchain comprehensively preserves transaction records and other data, providing a basis for full-chain tracing.

Examine the ledger: transactions leave traces throughout. Every virtual currency transaction, regardless of amount or when or where it occurs, is permanently and publicly recorded on the virtual currency's “public ledger.” The distributed ledger characteristics of blockchain technology mean that transaction information cannot be deleted or altered once it is recorded on-chain. The apparent address anonymity of virtual currencies only temporarily separates a wallet address from the user's real identity; it does not truly conceal identity.

Trace the links: real identities are difficult to hide. Although a wallet address is a string of gibberish, exchanges between virtual currencies and fiat currencies, as well as exchanges among virtual currencies, must pass through trading platforms and payment interfaces, thereby leaving traces such as device identifiers and network IP information. Professional institutions can use technical methods such as on-chain data analysis and big data matching to trace the actual users behind wallet addresses and reconstruct the entire process of fund flows.

On private keys: there is no safety net for asset security. In the blockchain system, if a private key is held by an individual, it is the sole credential for controlling virtual currencies, with no channel for reporting loss or recovery. Once a private key is lost, leaked, or stolen, its holder loses control of the virtual currencies. If a private key is entrusted to a trading platform, account passwords may be recovered through an appeal, but the user must bear the risk that the platform collapses or becomes unreachable.

Original link https://m.theblockbeats.info/flash/369232

Key points

BlockBeats stated,September 28 the official public account of China's Ministry of State Security published “Virtual Currency Crimes Cannot Be Traced? Think Again!”.
The article states that blockchain is open and transparent, that on-chain data cannot be altered, and that transaction records are retained in full.
The article states that wallet addresses can only temporarily separate users from their real identities and do not truly conceal identity.
The article states that virtual currency exchanges pass through trading platforms and payment interfaces and may leave traces such as device identifiers and network IP information.
The article states that professional institutions can use on-chain data analysis and big data matching to trace the actual users of wallet addresses and the flow of funds.
The article states that if a privately held private key is lost, leaked, or stolen, the holder loses control of the virtual currencies.
The article states that entrusting a private key to a trading platform entails the risk that the platform collapses or becomes unreachable.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Virtual currency wallets are typically displayed as a string of addresses and do not directly show names, but this does not mean they are completely untraceable. The article argues that public, immutable on-chain transaction records, together with device identifiers and network IP information left during exchanges, can help professional institutions link fund paths to actual users. The article also notes that private keys held by individuals cannot be reported lost or recovered, while entrusting them to platforms carries the risk that platforms collapse or become unreachable.

Why it matters to readers

This indicates that users should not mistake wallet address anonymity for the permanent concealment of real identities, and should also take seriously the traceability of on-chain transactions and the risks of private key custody.

Beginners should understand: a wallet address is not a name, but transactions leave records; a private key is the sole credential for controlling assets, and loss, leakage, or theft may all result in loss of control.

Risks and unknowns

The evidence is BlockBeats' account of an article from the official public account of China's Ministry of State Security. No official original page from that public account was provided, so it cannot be independently verified based on the available materials.
The evidence only states “September 28”; it does not specify the year the article was published.
The evidence does not disclose any new specific regulatory measures, penalty decisions, or enforcement cases.

Ministry of State Security official public account states that virtual currency transactions can be traced across the full chain

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