In the evolving landscape of China’s cryptocurrency regulation, the city of Duyun in Guizhou Province is pioneering an innovative method for preserving digital assets involved in legal cases. Authorities have begun seizing frozen crypto assets and transferring them into cold wallets, ensuring physical isolation to safeguard evidence and prevent the risk of asset loss.
This development comes at a time when #中国加密新规 (China’s new crypto regulations) have further tightened control, banning private possession and trading of cryptocurrencies to promote the digital yuan (e-CNY) as the sole legal digital currency. While regulatory restrictions continue to grow, Duyun’s experiment reflects an active exploration of judicial practices for handling digital assets within this strict framework.
Why It Matters
The cold wallet approach highlights a critical balance between law enforcement needs and asset security. Traditional seizure methods risk exposing digital assets to hacking or loss, while cold storage provides a more secure solution for courts and law enforcement agencies. This model could serve as a national reference point, offering practical guidance for other jurisdictions facing similar challenges.
Impact on Compliance
By formalizing procedures for digital asset preservation, Duyun’s initiative may contribute to shaping future compliance pathways in China. Enterprises and institutions working in blockchain and financial technology may need to align with such practices, focusing on legal asset custody, blockchain innovation, and digital yuan integration to adapt to the new era of regulation.
Conclusion
As China strengthens its stance on crypto through bans and the promotion of the e-CNY, experiments like Duyun’s cold wallet custody method reveal how the country is simultaneously building a legal and operational infrastructure for digital assets. This dual approach—strict regulation coupled with institutional innovation—may define the next stage of compliance and governance for crypto assets in China. #中国加密新规