​​Leading China’s war against cyber-crime, the Prosecutor General’s Office of the Supreme People’s Procuratorate has made it clear that they intend to be firm on any illegal activities that might be taking advantage of the opportunities that blockchain technology and the Metaverse have to offer.

____________________________________________________

• China’s Supreme People’s Procuratorate announces a crackdown on cybercrimes involving blockchain and the metaverse, aiming to enhance digital security.
• The crackdown targets rising cryptocurrency scams, including money laundering and investment scams, with a focus on the notorious “pig butchering” scheme.
• Despite a ban on crypto trading and mining, China is advancing regulations for digital currencies and Web3 technologies, amidst increasing crypto-related crimes in Hong Kong.

____________________________________________________

China Amplifies Measures Against Blockchain and Metaverse Crimes

The announcement was made on February 23 from the press conference podium with Li Xuehui, spokesperson, clarifying the increasing menace of cyber crimes in recent years, which renders the emerging digital technology platforms for criminal purposes.

Escalating Cryptocurrency Scams Prompt Legal Action

Yet, the conversation led to extensive concerns regarding cryptocurrency corruption with remarkable examples of money laundering. Li considered the toughest legislative option as the only working solution to stop this phenomenon and thus the main focus.

“In alignment with the directives from the 20th National Congress of the Communist Party of China, we are dedicated to advancing our internet legal work, aiming to foster a secure and wholesome digital ecosystem,” Li articulated.

Public Alerted to Investment Scams

According to Zhang Xiaojin, the head of the Fourth Procuratorate at the Supreme People’s Procuratorate, there is a red flag around investment schemes that offer nearly risk-free returns with only a small investment. More specifically he named the “pig-butchering” fraud where con artists win the confidence of victims, and persuade them to invest their hard-earned money on nonexistent digital projects only to disappear with the funds. The scam itself is a culprit of serious financial losses and took various actions like the seizure of over $9 million in assets last year in a related operation.

China’s Firm Stance on Cryptocurrency

While in 2021 China entirely abolished the opportunities of buying and mining the cryptocurrencies, they are still focusing on the development and implantation of regulations for Central Bank Digital Currencies (CBDCs), and other Web3 tech. Yet, this clampdown is stretching the déjà vu with increased crypto-related criminal activities in Hong Kong including more than doubled since 2021. The efforts of Hong Kong to ensure the rule of law in its digital currency market have been boosted by the introduction of this stricter licensing system and the approval of Bitcoin ETFs.

Subscribe to our newsletter! Here we will deliver seminal data and in-depth analytics on various topics of interest: artificial intelligence and cryptocurrency, to name a few. Press the button now and you will be the first to know all the new digital devices that hit the markets.