China’s regulators to clamp down on increasing instances of blockchain and metaverse-related criminal activities
China’s highest prosecutorial authority, the Supreme People’s Procuratorate, has pledged to punish criminals who exploit blockchain technology and metaverse projects for illicit activities. During a press conference on February 23, Li Xuehui, a spokesperson for the Supreme People’s Procuratorate, highlighted the growing prevalence of cybercrime in blockchains and the metaverse. Xuehui emphasized that cryptocurrency money laundering has become a mainstream method for illegal accumulation of wealth by criminals.
Zhang Xiaojin, the Director of the Fourth Procuratorate of the Supreme People’s Procuratorate, warned against investment scams that promise high returns with low risks, which have become prevalent in the local crypto economy. Zhang urged citizens and participants in the digital asset market to adapt to the evolving strategies employed by criminals. One such strategy, known as “pig butchering,” involves establishing a connection with a victim, convincing them to invest in a fraudulent digital asset project or exchange, and then disappearing with their invested capital. Last year, U.S. authorities seized over $9 million in Tether’s USDT stablecoin that was connected to this scam.
In 2023, Chinese authorities prosecuted more than 42,000 individuals involved in electronic fraud and crypto-related scams. This crackdown on bad actors using blockchain technology aligns with the surge in illicit activities in Hong Kong. Crypto crime in the special administrative region has tripled since 2021, as reported by crypto.news.
While Hong Kong is implementing regulations to create a crypto-friendly environment and safeguard investors without stifling innovation, China has banned crypto trading and mining since 2021. Hong Kong has introduced a licensing system for compliant businesses and has even hinted at allowing spot Bitcoin ETFs to be traded on local exchanges following the approval of 11 issuers by the U.S. Securities and Exchange Commission. Meanwhile, China has focused on developing central bank digital currencies (CBDCs) and formulating regulatory policies for web3.
For more news, you can follow us on Google News.
