- February 26, 2024
- Posted by: [email protected]
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In response to the escalating tide of cybercrimes exploiting the innovative realms of blockchain and metaverse projects, China’s apex prosecutorial authority, the Supreme People’s Procuratorate (SPP), has launched a concerted effort to counteract illegal activities. Expressing deep concern over the surge in online fraud, cyber violence, and personal information infringement within these cutting-edge technologies, the SPP is aiming to curb criminal activities in the ever-evolving landscape of digital finance.
The rise in blockchain-related crimes, especially those utilizing cryptocurrencies for money laundering, presents a formidable challenge due to the inherent anonymity that these digital assets afford. Ge Xiaoyan, the SPP’s deputy prosecutor-general, revealed a staggering 64% year-on-year increase in charges related to cybercrime-driven telecom fraud. Simultaneously, traditional crimes such as gambling, theft, pyramid schemes, and counterfeiting are transitioning into cyberspace, amplifying the complexity of the situation.
Procuratorates initiated charges against 280,000 individuals in cybercrime cases from January to November, marking a substantial 36% year-on-year increase, constituting nearly one-fifth of all criminal offenses. Ge Xiaoyan underscored the gravity of the situation, highlighting a nearly 23% surge in charges related to internet theft and an astonishing 86% increase in charges linked to online counterfeiting and the sale of substandard goods.
Director Zhang Xiaojin, who leads the SPP’s Fourth Procuratorate, is not only spearheading the battle on cybercrime but also issuing warnings to citizens and participants in the digital asset space regarding prevalent investment scams within the local crypto economy. Xiaojin emphasized the emergence of novel cybercrimes involving the metaverse, blockchain, and binary options platforms, pinpointing digital currencies as focal points for illicit activities and urging heightened vigilance from all stakeholders.
Interestingly, China’s strategy for combating digital asset-related crimes differs significantly from that of Hong Kong. While mainland China is intensifying efforts to address these issues, Hong Kong is adopting a more crypto-friendly regulatory approach, seeking to standardize its digital asset ecosystem and safeguard investors without stifling innovation.
Furthermore, the People’s Bank of China (PBoC) has weighed in on cryptocurrency-related concerns in its latest financial stability report. The central bank emphasizes the necessity of a collaborative international effort to regulate the industry. Despite the stringent measures against crypto adoption in 2021, with a comprehensive ban covering the majority of crypto transactions and mining, mainland China remains a crucial crypto-mining hub, posing ongoing challenges for regulatory authorities in navigating the evolving landscape of digital currencies.
