The preservation and handling of cryptocurrencies related to criminal cases is a significant challenge in China following the strict trading ban since 2021.

In light of this situation, the Duyun police in Guizhou Province have implemented the preservation of cryptocurrencies using cold wallets and stored them at the city's Asset Management Center, awaiting a court ruling.

MAIN CONTENT

  • Duyun police use cold wallets to freeze cryptocurrencies related to the case.

  • The Duyun Asset Management Center retains thousands of pieces of evidence and related funds.

  • Continuing to seek more effective solutions for managing criminal assets.

Why is it difficult to preserve cryptocurrencies in criminal cases in China?

Preserving cryptocurrencies became a major challenge after the ban on cryptocurrency trading in China in 2021. Police faced difficulties in retaining and processing digital assets due to the intangible, easily convertible, and highly secure nature of cryptocurrencies.

Another reason is the incomplete laws and procedures, forcing law enforcement agencies to seek appropriate methods to ensure legality and safety in preserving digital assets.

What methods have the Duyun police applied to preserve cryptocurrencies related to the case?

Duyun police freeze cryptocurrencies by converting and storing them in cold wallets established by the government, creating a physical isolation environment to prevent illegal withdrawals and money transfers.

After the freeze, cold wallets along with cryptocurrencies were transferred to the Duyun Asset Management Center, which concentrates on preserving criminal assets awaiting a court ruling. This is a step forward in the authorities' proactive control of digital assets.

The establishment of cold wallets and the Asset Management Center is the first effective method to handle criminal cryptocurrencies locally, while also laying the groundwork for future asset management reforms.
Police Chief Duyun, 2023

What notable achievements has the Duyun Asset Management Center achieved?

Since November 2022, the center has received over 24,700 pieces of evidence of various types, along with more than 20.5 million yuan related to different cases.

The center also focuses on storing over 7,000 case files, helping to manage documents and criminal assets more effectively while supporting scientific investigation and legal processing.

What are the challenges and next steps in the preservation of cryptocurrencies related to crime in China?

Authorities still face difficulties in preserving, transferring, and destroying digital assets due to the complex nature of cryptocurrencies and the rapid changes in technology.

Currently, the government is promoting inter-agency cooperation, reforming criminal asset management, and developing multifunctional asset management centers to enhance efficiency and transparency in handling digital assets.

Frequently Asked Questions

How are criminal cryptocurrencies preserved in China?

The police use cold wallets to freeze and retain cryptocurrencies at the Local Asset Management Center, awaiting a court ruling.

How many pieces of evidence does the Duyun Asset Management Center handle?

Since November 2022, the center has received over 24,700 pieces of evidence and more than 20.5 million yuan related to cases.

Why is it difficult to preserve cryptocurrencies in criminal cases?

The digital nature, easy convertibility, and lack of clear legal regulations are major challenges in preserving digital assets.

What is the goal of the Duyun Asset Management Center?

The center aims for centralized and transparent management, supporting investigations and protecting legal rights in handling criminal assets.

What is the next solution to improve the management of criminal cryptocurrencies?

Developing inter-agency cooperation and reforming criminal asset management processes based on new technology and laws.

Source: https://tintucbitcoin.com/vi-lanh-tien-dien-tu-bi-thu-giu/

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