The Supreme People’s Procuratorate (SPP) of China, the country’s highest prosecutorial authority, is taking action against cybercriminals who exploit blockchain and metaverse projects for illegal activities in order to combat the rising cybercrime rates. The SPP has expressed concern over the increase in online fraud, cyber violence, and personal information breaches.
According to the SPP, there has been a significant surge in cybercrimes committed on blockchains and within the metaverse. Criminals are increasingly using cryptocurrencies for money laundering, making it challenging to trace their illicit wealth.
Ge Xiaoyan, the deputy prosecutor-general of the SPP, revealed that charges of cybercrime-related telecom fraud have risen by 64% compared to the previous year. In addition to the rise in blockchain-related crimes, traditional offenses such as gambling, theft, pyramid schemes, and counterfeiting have also expanded into the digital realm.
Xiaoyan highlighted that charges related to internet theft have increased by nearly 23%, while charges related to online counterfeiting and the sale of substandard goods have surged by almost 86%.
Between January and November, the procuratorates filed charges against 280,000 individuals in cybercrime cases, representing a 36% year-on-year increase and accounting for 19% of all criminal offenses, as reported by Xiaoyan.
Zhang Xiaojin, the director of the Fourth Procuratorate of the SPP, issued a warning to citizens and participants in the digital asset market about investment scams in the local crypto economy. Xiaojin pointed out the rise of new cybercrimes utilizing the metaverse, blockchain, and binary options platforms, stating that digital currencies have become hotspots for these activities, emphasizing the need for increased vigilance.
China’s approach to combating digital asset-related crimes differs from that of Hong Kong. The special administrative region has implemented crypto-friendly regulations to standardize its digital asset ecosystem and protect investors while promoting innovation.
The People’s Bank of China (PBoC) addressed cryptocurrency regulation and decentralized finance in its recent financial stability report. The central bank devoted a separate section of the report to cryptocurrency assets, emphasizing the importance of global cooperation in regulating the industry.
In 2021, the PBoC officially announced measures to curb crypto adoption in mainland China, calling for enhanced coordination among different departments to crack down on crypto activities in the country. Despite the ban on virtually all crypto transactions and cryptocurrency mining, mainland China continues to be a major hub for crypto mining.
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