The Supreme People’s Procuratorate (SPP) of China, the highest prosecutorial authority in the country, is taking action against criminals involved in cybercrimes using blockchain and metaverse projects. The SPP has noticed a concerning increase in online fraud, cyber violence, and personal information infringement.
According to the SPP, cybercrimes committed on blockchains and within the metaverse have significantly risen. Criminals are increasingly using cryptocurrencies for money laundering, making it difficult to trace their illegal wealth.
Ge Xiaoyan, the deputy prosecutor-general of the SPP, revealed that charges related to telecom fraud associated with cybercrimes have increased by 64% compared to the previous year. Alongside blockchain-related crimes, traditional crimes such as gambling, theft, pyramid schemes, and counterfeiting have also expanded into cyberspace.
Xiaoyan highlighted that charges related to internet theft have risen by nearly 23%, while charges related to online counterfeiting and the sale of inferior goods have surged by almost 86%.
Between January and November, the procuratorates have pressed charges against 280,000 individuals involved in cybercrime cases. This reflects a 36% year-on-year increase and accounts for 19% of all criminal offenses, according to Xiaoyan’s report.
Zhang Xiaojin, the director of the Fourth Procuratorate of the SPP, issued a warning to citizens and participants in the digital asset market regarding investment scams in the local crypto economy.
Xiaojin pointed out the rise of new cybercrimes utilizing the metaverse, blockchain, and binary options platforms. He emphasized that digital currencies have become hotspots for these activities, underscoring 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 latest financial stability report. The report stressed the importance of regulating the industry through collaborative efforts among different countries.
In 2021, the PBoC officially announced measures to fight against crypto adoption in mainland China, calling for stronger inter-departmental coordination to crack down on crypto activity. Despite the ban on virtually all crypto transactions and mining, mainland China has remained a significant crypto-mining hub.
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