China's Ministry of State Security has declared that the perceived anonymity of virtual currencies is fundamentally a false proposition, asserting that blockchain technology enables full-chain traceability for law enforcement. The agency stated that transaction records permanently retained on ledgers provide a basis for tracking illicit activities and identifying real identities behind wallet addresses. The ministry warned that cryptocurrencies have become tools for money laundering, cyberattacks, and espionage, but emphasized that on-chain data makes these crimes traceable. Officials noted that while private keys control asset security, the immutable nature of blockchain records ensures that transaction traces remain visible throughout the entire transfer process.