China’s National Prosecutor Initiates Measures Against Cybercrimes Involving Blockchain

China’s top prosecutorial body is intensifying its initiatives to address the rising tide of cybercrimes by focusing on offenders who misuse blockchain and metaverse projects for unlawful purposes.

In a recent announcement, the Supreme People’s Procuratorate (SPP) voiced its alarm regarding the increase in online fraud, cyber violence, and violations of personal data.

The SPP reported a notable rise in cybercrimes occurring on blockchains and within the metaverse. Criminals are progressively utilizing cryptocurrencies for money laundering, complicating the tracking of their illegal assets.

Telecom Fraud Charges Have Increased by 64% Year-on-Year

Ge Xiaoyan, deputy prosecutor-general of the SPP, disclosed that charges associated with cybercrime and telecom fraud have surged by 64% compared to the previous year.

In addition to the uptick in blockchain-related offenses, conventional crimes such as gambling, theft, pyramid schemes, and counterfeiting have also migrated to the online realm.

Xiaoyan highlighted that charges related to internet theft have risen by nearly 23%, while charges concerning online counterfeiting and the distribution of substandard goods have skyrocketed by almost 86%.

From January to November, the procuratorates brought charges against 280,000 individuals in cybercrime cases, marking a 36% year-on-year increase. These incidents accounted for 19% of all criminal offenses, underscoring the escalating seriousness of the situation.

Zhang Xiaojin, director of the Fourth Procuratorate of the SPP, cautioned citizens and participants in the digital asset sector about investment frauds within the local cryptocurrency market.

Xiaojin specifically noted the emergence of new cybercrimes leveraging the metaverse, blockchain, and binary options platforms.

He stressed that digital currencies have become focal points for these activities, calling for increased awareness.

China’s strategy for addressing crimes related to digital assets contrasts with that of Hong Kong.

The special administrative region has adopted crypto-friendly regulations aimed at standardizing its digital asset ecosystem and safeguarding investors without hindering innovation.

China’s Central Bank Discusses Crypto Regulation

In its most recent financial stability report, the People’s Bank of China (PBoC) tackled matters concerning cryptocurrency regulation and decentralized finance.

The Chinese central bank underscored the necessity for collaborative efforts among various nations to effectively regulate the sector.

In 2021, the PBoC introduced measures to curb the use of cryptocurrencies in mainland China, advocating for enhanced inter-departmental cooperation to suppress crypto activities.

Despite the prohibition on nearly all cryptocurrency transactions and mining, mainland China continues to be a significant hub for crypto mining.

Reports indicate that China plans to update its outdated Anti-Money-Laundering (AML) legislation to address the growing risks linked to virtual assets.

The draft amendment, discussed at a State Council meeting led by Chinese Premier Li Qiang, is set to be reviewed by the national legislature soon.

While the complete text of the proposed amendment has not been made public, legal experts have suggested that its main aim is to combat money laundering involving virtual assets.

The urgency to tackle money laundering associated with virtual assets is highlighted in a report by Chinese digital news outlet Jiemian, referencing Yan Lixin, executive director at the China Centre for Anti-Money-Laundering Studies at Fudan University in Shanghai.

The post China’s National Prosecutor Takes Action Against Blockchain Cybercrimes appeared first on Cryptonews.