The Supreme People’s Procuratorate (SPP) of China, the country’s highest prosecutorial authority, is intensifying efforts to combat the surge in cybercrimes linked to blockchains and the metaverse. Reports indicate a notable increase in online fraud, cyber violence, and personal data breaches, prompting the SPP to take action against criminals exploiting these technologies for illegal activities.
The SPP has observed a significant uptick in cybercrimes involving blockchains and the metaverse, with criminals increasingly leveraging cryptocurrencies for money laundering, complicating efforts to track their illicit gains. Deputy Prosecutor-General Ge Xiaoyan highlighted a 64% year-on-year rise in cybercrime-related telecom fraud charges.
Moreover, traditional crimes like gambling, theft, pyramid schemes, and counterfeiting have expanded into cyberspace, further exacerbating the situation. Ge Xiaoyan noted a nearly 23% increase in charges related to internet theft and an 86% surge in charges linked to online counterfeiting and the sale of substandard goods.
Between January and November, procuratorates filed charges against 280,000 individuals in cybercrime cases, marking a 36% year-on-year increase and constituting 19% of all criminal offenses.
Zhang Xiaojin, the director of the Fourth Procuratorate of the SPP, cautioned citizens and digital asset participants about investment scams in the local cryptocurrency economy. He underscored the emergence of new cybercrimes involving the metaverse, blockchain, and binary options platforms, stressing the need for heightened vigilance.
China’s approach to tackling digital asset-related crimes contrasts with Hong Kong’s strategy, which focuses on implementing crypto-friendly regulations to standardize the digital asset ecosystem and safeguard investors while fostering innovation.
The People’s Bank of China (PBoC) addressed cryptocurrency regulation and decentralized finance in its latest financial stability report, emphasizing the necessity for international cooperation in regulating the industry.
In 2021, the PBoC announced measures to curb crypto adoption in mainland China, emphasizing the importance of inter-departmental coordination in cracking down on crypto activities despite the country’s status as a major crypto-mining hub, despite the ban on virtually all crypto transactions and mining.