China’s Supreme People’s Procuratorate (SPP), the highest prosecutorial authority in the country, is taking action against cybercriminals who are exploiting blockchain and metaverse projects for illegal activities as part of its efforts to combat the increasing number of cybercrimes. The SPP has expressed concern about the rise in online fraud, cyber violence, and personal information infringement.
According to the SPP, there has been a significant increase in cybercrimes committed on blockchains and within the metaverse. Criminals are increasingly using cryptocurrencies for money laundering, making it challenging to trace their illegal wealth.
Ge Xiaoyan, the deputy prosecutor-general of the SPP, revealed that telecommunications fraud charges related to cybercrime have risen by 64% compared to the previous year. In addition to 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 increased 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 filed charges against 280,000 individuals in cybercrime cases, reflecting a 36% increase compared to the previous year. These cases accounted for 19% of all criminal offenses, according to Xiaoyan.
Zhang Xiaojin, the director of the Fourth Procuratorate of the SPP, also 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 involving 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 cracking down on 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 without stifling innovation.
In its latest financial stability report, the People’s Bank of China (PBoC) addressed issues related to cryptocurrency regulation and decentralized finance. The report emphasized the need for joint efforts by different countries to regulate the industry.
In 2021, the PBoC announced measures to combat crypto adoption in mainland China, calling for stronger coordination between different departments to crack down on crypto activity in the country. Despite the ban on virtually all crypto transactions and cryptocurrency mining, mainland China remains a major hub for crypto mining.
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