A law professor at the East China University of Political Science and Law, Yang Kai, has called for China to establish standardised procedures for recovering illicit digital assets amid a rise in cryptocurrency-related crimes.
In an article published in the People’s Court Daily, the official publication of the Supreme People’s Court in China, Yang highlighted the complexities arising from the lack of uniform regulations for managing digital currencies like bitcoin and ether.
Yang emphasised the urgent need to legalise and standardise the disposal of virtual assets, given the increasing number of criminal cases involving cryptocurrencies.
This call follows recent revisions by the Supreme People’s Court and the Supreme People’s Procuratorate, which expanded the definition of money laundering to include digital currencies, online game coins, and live streaming tips.
Yang pointed out that law enforcement agencies face significant challenges in recovering and liquidating cryptocurrencies due to inconsistent legal standards across various jurisdictions.
This lack of uniformity complicates efforts to track, seize, and convert digital assets into liquid funds, often leaving large amounts of virtual currency inaccessible for economic activities.
“Although law enforcement agencies have tried a variety of disposal methods, the absence of unified standards leads to varying implementations across regions,” Yang stated.
He highlighted the need for comprehensive guidelines to streamline the recovery and liquidation process.
The professor also urged Chinese regulators to increase international cooperation, noting the cross-border nature of digital assets.
He argued that closer collaboration with international counterparts would be essential for creating a more effective framework to address challenges associated with digital currencies, ensuring secure asset recovery and the prevention of illicit activities.