September 9, 2024
By Our Correspondent
A law professor from the East China University of Political Science and Law has underscored the pressing necessity for China to establish standardized procedures for the recovery of illicit digital assets, in light of the increasing prevalence of cryptocurrency-related crimes. He pointed out that the absence of consistent standards complicates the asset recovery process and called for the development of comprehensive guidelines alongside international collaboration to effectively manage digital currencies.
In an article published on Tuesday in the People’s Court Daily, the official journal of the Supreme People’s Court of China, law professor Yang Kai highlighted the critical need for China to standardize the recovery processes for illicit digital assets. Referencing the rising incidence of criminal activities involving digital currencies such as bitcoin and ether, the professor asserted: The legalization of virtual currency disposal is urgently required.
His remarks came in the wake of recent amendments to laws by the Supreme People’s Court and the Supreme People’s Procuratorate, which expanded the definition of money laundering to encompass cryptocurrencies, online gaming currencies, and live streaming tips.
Yang emphasized the numerous obstacles faced by law enforcement agencies in their efforts to recover cryptocurrencies, noting the lack of uniform standards and regulations across different jurisdictions. This inconsistency hinders effective tracking, seizure, and restitution of digital assets, as varying legal frameworks and technological capabilities present significant challenges in the quest for justice.
He remarked, “Despite law enforcement’s attempts to employ various disposal methods, the absence of unified standards results in considerable discrepancies in implementation across regions,” further stating: “A substantial volume of virtual currencies remains inaccessible and cannot be converted into liquid assets, thereby disrupting the normal functioning of economic activities.”
