Management and Distribution of Cryptocurrency in Criminal Cases in China
Overview of new legal regulations related to cryptocurrencies
On June 19, the People's Daily published an article highlighting significant changes in the processing of cryptocurrencies related to criminal cases. The work emphasizes the ownership nature of cryptocurrencies, which has now received clear recognition in judicial practice. Courts in China have begun exploring more complex processing procedures for this type of digital asset. In particular, the Guangzhou area has built an inter-sectoral asset management platform, applying the model of 'static assets, dynamic information', to ensure a clear separation between management and control.
Innovative legal solutions for handling cryptocurrencies in cases
Safe management and separation of digital assets
How to ensure safety during the seizure and custody of cryptocurrencies? Some localities have proposed creating specific court cryptocurrency wallets, in which secret keys are encrypted into parts, then stored at case processing agencies and custodial organizations in segments, helping to protect control rights and avoid risks of digital asset depreciation.
Converting cryptocurrency to fiat currency
In cases of compensating victims or confiscating assets, consideration should be given to foreign exchange management regulations. It is possible to entrust legal financial organizations, supervised by the People's Bank of China or foreign exchange regulatory agencies, in countries where cryptocurrency operations are legally permitted, such as Hong Kong, to convert digital assets into fiat currency at market prices, and then carry out related legal procedures according to the regulations of the State Administration of Foreign Exchange.
Handling illegal cryptocurrencies and national security
Cryptocurrency used for criminal activities or national security threats, such as high-security coins (privacy Coin), needs to be sent to 'black hole' addresses to be completely removed from circulation. These actions help combat money laundering, maintain security, and stabilize the digital technology market.
Source: https://tintucbitcoin.com/xu-ly-phap-luat-tien-dien-tu-toan-cau/
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