China’s Supreme People’s Procuratorate Targets Cybercriminals Using Blockchain and Metaverse for Illegal Activities
China’s Supreme People’s Procuratorate Targets Cybercriminals Using Blockchain and Metaverse for Illegal Activities
In a bid to combat the surge in cybercrimes, China’s Supreme People’s Procuratorate (SPP) is cracking down on criminals who exploit blockchain and metaverse projects for illegal activities. The country’s highest prosecutor authority expressed concern over the rise in online fraud, cyber violence, and violations of personal information.
According to SPP reports, there has been a significant increase in cybercrimes committed on blockchain and within the metaverse. Criminals are increasingly turning to cryptocurrencies for money laundering, making it challenging to trace the wealth associated with their illicit activities.
Deputy Attorney General Ge Xiaoyan of the SPP revealed that allegations of telecommunication fraud related to cybercrime have surged by 64% annually. In addition to blockchain-related crimes, traditional offenses such as gambling, theft, pyramid schemes, and counterfeiting have also made their way into cyberspace.
Xiaoyan highlighted a nearly 23% increase in allegations of internet theft and an 86% jump in allegations related to counterfeiting and the online sale of inferior goods.
Prosecutors have already indicted 280,000 individuals in cybercrime cases between January and November, marking a 36% annual increase. This accounts for 19% of all criminal crimes, as per Xiaoyan’s report.
Director Zhang Xiaojin of the fourth SPP Procuracy issued a warning to citizens and digital asset participants regarding investment fraud in the local crypto economy. Xiaojin emphasized the rise of new cybercrimes in the metaverse, blockchain, and binary option platforms, with digital currencies becoming hotspots for illicit activities.
While China is taking stringent measures to combat digital asset-related crimes, Hong Kong has adopted a different approach by implementing crypto-friendly regulations to regulate its digital asset ecosystem and safeguard investors without stifling innovation.
The People’s Bank of China (PBoC) addressed issues related to regulated cryptocurrencies and decentralized finance in its latest financial stability report. The central bank emphasized the importance of regulating the industry through collaborative efforts among different countries.
In 2021, PBoC announced measures to curb crypto adoption in mainland China, leading to increased coordination among departments to eliminate crypto activities in the country. Despite the ban on nearly all crypto transactions and mining, mainland China continues to serve as a significant crypto mining hub.
As cybercrimes evolve in the digital age, China’s proactive stance against illicit activities in the blockchain and metaverse realms underscores the importance of vigilance and regulatory measures to safeguard the integrity of the digital asset ecosystem.
