China’s Supreme People’s Procuratorate (SPP) has launched a rigorous campaign against cybercriminals exploiting blockchain technology and metaverse platforms. The top prosecutorial office has observed a worrying surge in cases of fraud, online abuse, and violations of personal data security.
Intensified Scrutiny of Digital Currency Misuse
The SPP notes a marked increase in cybercrimes within the blockchain and metaverse domains, with offenders frequently using digital currencies for money laundering. This trend hampers tracing illicit funds. Deputy chief prosecutor Ge Xiaoyan highlighted a 64% spike in telecom fraud charges related to cybercrimes year-on-year. She also remarked on the migration of traditional offenses like gambling, theft, Ponzi schemes, and forgery into the digital realm.
Legal actions have been taken against 280,000 individuals for cybercrimes from January to November, representing a 36% increase from the previous year and making up 19% of all criminal prosecutions. Zhang Xiaojin from the SPP’s Fourth Prosecutorial Office cautioned investors about the proliferation of fraud in the local digital currency market.
Xiaojin also cited the emergence of novel cybercrimes on metaverse, blockchain, and futures options platforms. With digital currencies becoming a nexus for these illegal activities, the need for investor vigilance is heightened.
Regulatory Approach to Cryptocurrency in China
China’s strategy in policing crypto asset-related crimes offers a stark contrast to Hong Kong’s regulatory position, which leans towards creating a conducive, regulated environment for the crypto sector to thrive responsibly. The People’s Bank of China (PBoC) underscored the significance of international cooperation in regulating crypto assets in a recent financial stability report. Despite a comprehensive ban on cryptocurrency dealings and mining, China remains a hub for crypto mining activities.
