The People's Court Daily published an article signed by Zhao Liang from the Intermediate People's Court of Shenzhen, Guangdong Province: "Criminal Case Involving Virtual Currency Disposal: Challenges, Innovations, and Judicial Responsibility."
The article points out that virtual currency has corresponding property attributes, and a basic consensus has been formed in judicial practice. For cases that require compensation for victims' losses or confiscation, in order to balance the need for disposing of involved virtual currency with mainland regulatory policies, it can be explored to register and supervise with qualified third-party institutions under the People's Bank, foreign exchange management, and other departments, to exchange virtual currency for legal tender at market prices through compliant licensed trading platforms in jurisdictions where virtual currency trading is legal, such as Hong Kong. After cashing out abroad, the process will be handled in accordance with the provisions of the State Administration of Foreign Exchange's letter regarding the opening of foreign exchange accounts and handling of foreign exchange receipts and payments by people's courts in foreign-related judicial activities.
For virtual currencies used in crimes that pose a threat to national security and public interests, such as privacy coins, they can be sent to a "black hole address" for destruction, permanently exiting circulation.