In China, developments continue to make headlines. The country’s highest prosecutorial office, the Supreme People’s Procuratorate (SPP), has started targeting criminals using blockchain and metaverse projects for illegal activities in an effort to combat the rise in cybercrime. The SPP has expressed concern over the increase in online fraud, cyber violence, and personal information breaches.
Ongoing Efforts Against Cryptocurrency-Related Crimes
The SPP reported a significant increase in cybercrimes committed within blockchain ecosystems and metaverse projects. Criminals are increasingly using cryptocurrencies to launder money, complicating the tracking of illegal wealth. Ge Xiaoyan, the deputy chief prosecutor of the SPP, revealed that accusations of telecom fraud related to cybercrimes had increased by 64% compared to the previous year. As crimes related to the blockchain area increase, traditional crimes such as illegal gambling, theft, Ponzi schemes, and forgery are also spreading in the cyber environment.
Prosecutors filed criminal complaints against 280,000 individuals related to cybercrimes between January and November. According to Xiaoyan, this number indicates a 36% increase from the previous year and accounts for 19% of all criminal offenses. Zhang Xiaojin, Director of the SPP’s Fourth Prosecutorial Office, also warned citizens and crypto asset participants about investment fraud in the local crypto economy.
Xiaojin pointed to the rise of new cybercrimes using metaverse, blockchain, and futures options platforms, noting that cryptocurrencies have become hotspots for these activities and emphasized the need for increased caution.
China and the Cryptocurrency Sector
China’s efforts to prevent crimes related to crypto assets differ from the legal framework addressed by the Hong Kong government. Hong Kong, China’s special administrative region, is adopting a different approach by implementing crypto-friendly regulations to standardize the crypto asset ecosystem and protect investors without stifling innovation.
The People’s Bank of China (PBoC) addressed cryptocurrency regulation and decentralized finance in its latest financial stability report. The Chinese central bank dedicated a section to crypto assets in the report, emphasizing the need for the sector to be regulated through the joint efforts of different countries.
In 2021, the PBoC officially announced measures to combat the adoption of cryptocurrencies on the Chinese mainland and pushed for stronger inter-departmental coordination to dismantle crypto activities in the country. Despite a ban covering almost all cryptocurrency transactions and mining, China continues to be a significant center for crypto mining.
