The cryptocurrency handling process in cases is carried out under close cooperation between relevant authorities and the stock exchange.

Due to the strict ban on cryptocurrency trading in Vietnam since 2021, liquidating cryptocurrencies related to the case is a major challenge. The government has established a coordination mechanism to ensure transparent and effective handling of that cryptocurrency.

MAIN CONTENT

  • The cooperation mechanism between the police agency and the exchange ensures the management of cryptocurrency in the case.

  • The operational process includes liquidation through a licensed exchange in Hong Kong.

  • The funds collected are transferred to a special account, processed according to legal regulations.

How is the cryptocurrency handling process related to the cases carried out?

The process is established by the Legal Department of the City Police in coordination with the stock exchange in Beijing to manage and handle cryptocurrency in criminal cases.

This process begins with the police agency authorizing the exchange to receive the physical cryptocurrency. The exchange selects specialized organizations to inspect, receive, and transfer the assets. Next, the funds are publicly sold on a licensed exchange operating in Hong Kong. The proceeds are transferred to a special account of the police agency, which will then be confiscated or returned to the victim according to the law.

The coordination between departments with a clear process helps ensure transparency and effectiveness in handling cryptocurrency related to the case.

Which parties participate and coordinate in this cryptocurrency handling mechanism?

The mechanism involves multiple parties including police forces, the stock exchange, and professional service organizations to ensure a systematic operational process.

The Legal Department of the City Police is responsible for guiding and supervising, while the Beijing Stock Exchange is responsible for receiving and operating the handling of cryptocurrency. Specialized service units are responsible for inspection and transfer of digital assets, ensuring that the steps are executed accurately and transparently.

This inter-agency coordination has been formed through many rounds of discussions and strict agreements, ensuring quick processing in accordance with legal regulations.

"The signing of the cryptocurrency handling agreement with the Beijing Stock Exchange is an important step to address difficulties in liquidating digital assets in criminal cases."

Representative of the Legal Department of the City Police, speaking on March 29, 2024

When was the cryptocurrency handling agreement signed and what does it signify?

On March 29, 2024, the Legal Department directed the Thuy An branch to sign the agreement 'Handling of Cryptocurrency' with the Beijing Stock Exchange.

The agreement was signed after many rounds of discussions to comprehensively prepare and ensure that the cryptocurrency handling process in the case is executed smoothly, safely, and legally. This is the foundation for inter-agency coordination on liquidation, conversion, and distribution of cryptocurrency, creating the necessary transparency in the handling of confiscated digital assets.

This process contributes to increasing efficiency, reducing the risk of asset loss, and meeting strict legal requirements.

Are there any difficulties that need to be noted in the cryptocurrency handling process?

Handling cryptocurrency related to the case faces challenges due to the strict trading ban since 2021, making direct liquidation domestically nearly unfeasible.

It is necessary to rely on the cooperation with a licensed exchange in Hong Kong to carry out the sale and conversion of cryptocurrency through a closed process. This requires standardizing the multi-party operational process and the steps of inspection and transfer tightly to avoid errors or fraud. In addition, the funds must be tightly controlled when transferred to the special account of the police agency, in accordance with legal regulations.

What are the specific steps in the cryptocurrency sale process and how will the proceeds be used?

The process includes the main steps: transferring cryptocurrency to a third-party professional for inspection – transferring to the exchange in Hong Kong – conducting public sales on the exchange – transferring funds to the special account of the police.

The proceeds from the sale as per legal regulations will be confiscated and handed over to the state treasury or returned to the victims. This is a transparent process that ensures the rights of the parties involved and ensures legal effectiveness.

"We commit to operate the cryptocurrency handling process transparently and legally to protect the rights of victims and ensure reliability in law enforcement."

Representative of the Beijing Stock Exchange, 2024

Frequently Asked Questions

1. How is the cryptocurrency in the case handled when confiscated?

Confiscated cryptocurrency is transferred to an intermediary exchange for public sale, and the proceeds are transferred to a special account of the police agency, after which it will be confiscated or returned to the victim according to the law.

2. Which agency is responsible for managing cryptocurrency related to the case?

The Legal Department of the police cooperates with the stock exchange and specialized service organizations responsible for ensuring the handling process.

3. Why must cryptocurrency be sold through a licensed exchange in Hong Kong?

The domestic ban on cryptocurrency trading makes domestic liquidation unfeasible, so a legally licensed exchange in Hong Kong must be used to conduct safe and transparent transactions.

4. Is the cryptocurrency handling process complicated?

The process is meticulously constructed, with multi-party coordination ensuring that inspection, transfer, and sale of cryptocurrency are transparent, lawful, and minimize the risk of loss.

5. How will the proceeds from the sale of cryptocurrency be used?

The funds after collection are confiscated and submitted to the state treasury or returned to the victims according to current legal regulations.

Source: https://tintucbitcoin.com/bse-ban-tien-dien-tu-bac-kinh-cong-khai/

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