The top prosecutor in China is cracking down on cybercriminals who use blockchain and metaverse efforts for illicit reasons in an attempt to stem the tide of cybercrime.
The Supreme People’s Procuratorate (SPP) recently released a statement expressing their alarm about the increase in cybercrime, data breaches, and fraudulent online transactions.
Cybercrimes performed on metaverse blockchains have reportedly increased dramatically, according to the SPP. It is becoming more difficult to track criminals’ unlawful income as they use cryptocurrency for money laundering.
According to Ge Xiaoyan, the SPP’s deputy prosecutor-general, charges involving cybercrime and telecom fraud have increased by 64 percent compared to the previous year.
Traditional criminal activities have also spread to the internet, including gambling, theft, pyramid scams, and counterfeiting, in addition to crimes relating to blockchain.
Xiaoyan highlighted that there has been a 23% spike in charges pertaining to online theft and an 86% surge in charges pertaining to online counterfeiting and the sale of substandard products.
The prosecutor’s office charged 280,000 people with cybercrime between January and November, up 36% from the same period last year. The fact that these incidents accounted for 19% of all crimes shows how serious the problem is becoming.
Concerned about investment frauds in the local crypto economy, Zhang Xiaojin, director of the Fourth Procuratorate of the SPP, has issued a warning to people and players in the digital asset area.
New types of criminality that use blockchain technology, the metaverse, and binary options platforms have recently emerged, as Xiaojin pointed out.
He stressed the importance of being extra vigilant, saying that digital currencies have become centers for these kinds of crimes.
There is a difference between Hong Kong’s and China’s approaches to prosecuting crimes involving digital assets.
In an effort to unify its digital asset ecosystem, safeguard investors, and encourage innovation, the special administrative area implemented crypto-friendly rules.
The People’s Bank of China (PBoC) discussed cryptocurrency regulation and decentralized finance in its most recent report on financial stability.
In order to properly oversee the business, the Chinese central bank stressed that various nations must work together.
As part of its efforts to curb cryptocurrency use on the mainland, the People’s Bank of China (PBoC) called for more cooperation amongst government agencies in 2021.
Mainland China is still a key center for cryptocurrency mining, even though the government has banned almost all crypto transactions and mining.
According to reports, China is planning to update its anti-money-laundering (AML) legislation to address the growing concerns around virtual assets.
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