A law professor from the East China University of Political Science and Law has called for China to establish clear procedures for recovering illegal digital assets, as cryptocurrency-related crimes are on the rise.
Standardized procedures for seizure and crypto recovery
In an article published in the People’s Court Daily, professor Yang Kai highlighted the need for standardized recovery processes for illicit digital assets.
He pointed out that the increasing number of criminal cases involving cryptocurrencies like Bitcoin and Ethereum shows that legalizing the disposal of virtual currency is urgently needed.
There was more changes lately in laws by the Supreme People’s Court and the Supreme People’s Procuratorate, which expanded the definition of money laundering to include cryptocurrencies, online game currencies, and tips from live streaming.
Legal guidelines for law enforcement
Yang noted that law enforcement agencies face many challenges when trying to recover cryptocurrencies, because the lack of uniform standards and regulations across different areas complicates the tracking, seizing, and returning of digital assets.
This inconsistency creates major obstacles, as different legal systems and technological capabilities vary widely.
He mentioned that even though law enforcement has tried various methods to handle these assets, the absence of unified rules leads to differences in how these methods are applied.
He also pointed out that many virtual currencies are currently frozen and cannot be turned into cash, which disrupts normal economic activities.
Comprehensive law, clear requirements for the regulators, authorities
Yang believes that having a complete, and more importantly, unified set of guidelines for law enforcement, or any state authoritiy is essential for the safe and efficient liquidation of these digital assets.
He also urged Chinese regulators to work more closely with international partners, as the global nature of digital currencies requires a global, coordinated approach.
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