China’s SPP Targets Cybercriminals Exploiting Blockchain

China’s Supreme People’s Procuratorate (SPP) cracks down on cybercriminals exploiting blockchain and metaverse technologies for illegal activities.

The highest Chinese prosecuting body, the Supreme People’s Procuratorate (SPP), is cracking down on cybercriminals who are taking advantage of blockchain and metaverse technologies for illicit purposes. Online fraud, cyber aggression, and personal information infringement have been on the rise, and the SPP is worried about it.

Cybercrimes perpetrated on metaverse blockchains have increased significantly, according to the SPP. Because of the decentralized nature of cryptocurrency, it is becoming more difficult to track the origins of criminals’ unlawful gains.

Deputy prosecutor-general of the SPP Ge Xiaoyan said that charges of telecom fraud involving cybercrime had increased by 64% compared to the previous year. Even if crimes involving blockchain are on the rise, online has also become a playground for more conventional forms of crime including gambling, theft, pyramid schemes, and counterfeiting.

The charges of online theft have climbed by approximately 23%, according to Xiaoyan, while the charges of online counterfeiting and sales of substandard items have risen by about 86%.

From January through November, 280,000 people were indicted in cybercrime cases by the prosecutor’s office. According to Xiaoyan, this represents a 36% increase from the previous year and accounts for 19% of all criminal offenses.

Concerning investment schemes in the local crypto economy, Zhang Xiaojin, director of the Fourth Procuratorate of the SPP, also issued a warning to people and players in the digital asset market.

A new wave of cybercrimes using the metaverse, blockchain, and binary options platforms has emerged, according to Xiaojin. He said that digital currencies have become breeding grounds for these crimes, therefore people need to be extra careful.

The measures used by China and Hong Kong to combat crimes involving digital assets are distinct from one another. To standardize its digital asset ecosystem, safeguard investors, and encourage innovation, the special administrative area of China has adopted a crypto-friendly regulatory framework.

In its most recent report on financial stability, the People’s Bank of China (PBoC) discussed matters pertaining to cryptocurrency regulation and decentralized finance. The report included a dedicated section on cryptocurrency assets from the Chinese central bank, who emphasized the importance of international cooperation in regulating the market.

The People’s Bank of China (PBoC) has announced steps to combat cryptocurrency adoption in mainland China in 2021, calling for more cooperation across government agencies to curb cryptocurrency activity. The prohibition on almost all cryptocurrency transactions and mining has not stopped mainland China from being a significant center for crypto mining.