Reportedly, Zhang Xiaojin, director of China’s Fourth Procuratorate within the Supreme People’s Procuratorate, warned citizens and participants in digital assets about the risks of cryptocurrency investment scams.
China’s Supreme People’s Procuratorate (SPP) Intensifies Efforts Against Cybercrimes Exploiting Blockchain and Metaverse
In response to the surging tide of cybercrimes, China’s Supreme People’s Procuratorate (SPP), the nation’s highest prosecutorial body, is intensifying its efforts to combat criminals exploiting blockchain and metaverse projects for illicit purposes. The SPP has expressed deep concern over the escalation of online fraud, cyber violence, and infringements on personal information.
According to the SPP, there has been a notable uptick in cybercrimes perpetrated through blockchains and within virtual environments like the metaverse. Criminal elements are increasingly leveraging cryptocurrencies for money laundering, a tactic that complicates efforts to track and seize their unlawfully obtained assets.
Ge Xiaoyan, the deputy prosecutor-general of the SPP, highlighted a sharp 64% year-on-year increase in charges related to cybercrime-driven telecom fraud. Furthermore, alongside the rise in blockchain-related offenses, conventional criminal activities such as gambling, theft, pyramid schemes, and counterfeiting have expanded their reach into the digital realm.
Xiaoyan underscored that charges stemming from internet theft have surged by nearly 23%, while those associated with online counterfeiting and the sale of substandard goods have skyrocketed by almost 86%. These statistics underscore the urgent need for robust measures to combat cybercrimes and safeguard the digital ecosystem.
China’s Cybercrime Crackdown: Procuratorates Take Aim at Rising Offenses
Between January and November, Procuratorates in China have brought charges against a staggering 280,000 individuals involved in cybercrime cases, marking a significant 36% year-on-year surge. This surge accounts for a substantial 19% of all criminal offenses, a concerning trend highlighted by Xiaoyan.
In addition to this alarming increase in cybercrime, Zhang Xiaojin, the director of the Fourth Procuratorate within the Supreme People’s Procuratorate, has issued a stark warning to both citizens and participants in the local digital asset landscape. Xiaojin emphasized the emergence of new cybercrimes utilizing the metaverse, blockchain, and binary options platforms, noting that digital currencies have become hotspots for such illicit activities. This underscores the urgent need for heightened vigilance among investors and users.
China’s crackdown on metaverse-related crimes coincides with a surge in illicit activities observed in Hong Kong. However, Hong Kong has adopted a contrasting strategy by implementing crypto-friendly regulations aimed at standardizing its digital asset ecosystem and safeguarding investors while fostering innovation.
Meanwhile, the People’s Bank of China (PBoC) has addressed cryptocurrency regulation and decentralized finance (DeFi) concerns in its latest financial stability report. The central bank dedicated a specific section to cryptocurrency assets, emphasizing the necessity for a collaborative, international effort to regulate the industry effectively.
In 2021, the PBoC officially announced measures to combat crypto adoption in mainland China, advocating for enhanced inter-departmental coordination to crack down on crypto-related activities. Despite stringent regulations covering nearly all crypto transactions and mining activities, mainland China has persisted as a significant crypto-mining hub.
