China's Supreme Procuratorate (SPP) is intensifying efforts to combat cybercrime involving blockchain and Metaverse projects amid a surge in illegal activities. The SPP expressed concern over the escalating instances of online fraud, violence, and infringement of personal information facilitated by these emerging technologies.
According to the Supreme People's Procuratorate, cybercrime within the blockchain and metaverse sectors has seen a significant uptick. Criminals are increasingly resorting to cryptocurrencies for money laundering, posing challenges to law enforcement agencies in tracking their illicit proceeds.
Ge Xiaoyan, deputy prosecutor general of the Supreme People's Procuratorate, revealed a staggering 64% year-on-year increase in charges related to telecommunications fraud associated with cybercrime. Concurrently, traditional crimes such as gambling, theft, pyramid schemes, and counterfeiting have expanded their presence in cyberspace.
Xiaoyan underscored the alarming rise in expenses linked to online theft and counterfeiting, surging by nearly 23% and 86%, respectively. Procuratorates prosecuted approximately 280,000 individuals in cybercrime cases between January and November, marking a 36% year-on-year increase and accounting for 19% of all criminal offenses.
Zhang Xiaojin, director of the Fourth Procuratorate of the Supreme People's Procuratorate, cautioned citizens and digital asset participants to remain vigilant against investment scams prevalent in the local crypto economy. Xiaojin highlighted the growing array of cybercrimes leveraging the Metaverse, blockchain, and binary options platforms, with digital currencies emerging as focal points for illicit activities.
China's approach to combating digital asset-related crime contrasts with that of Hong Kong, where crypto-friendly regulations have been introduced to oversee the digital asset ecosystem while safeguarding investors and fostering innovation. The People's Bank of China (PBoC) has addressed cryptocurrency regulation and decentralized finance in its recent financial stability report, stressing the importance of global cooperation in regulating the industry.
In 2021, the People's Bank of China unveiled measures to crack down on cryptocurrency adoption across mainland China, advocating for enhanced inter-departmental coordination to curb cryptocurrency activities. Despite the stringent regulatory stance, mainland China continues to serve as a prominent hub for cryptocurrency mining activities.
