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A law professor at the East China University of Political Science and Law has highlighted the urgent need for China to standardize procedures for recovering illicit digital assets due to a rise in cryptocurrency-related crimes. He stressed the lack of uniform standards complicates asset recovery and urged for comprehensive guidelines and international cooperation to manage digital currencies effectively.
China Urged to Standardize Digital Asset Recovery
A law professor at the East China University of Political Science and Law, Yang Kai, emphasized the urgent need for China to standardize the recovery of illicit digital assets in an article published on Tuesday in the People’s Court Daily, the official publication of the Supreme People’s Court in China.
Citing the growing number of criminal cases involving digital currencies like bitcoin and ether, the law professor stressed:
Legalizing disposal of virtual currency is urgently needed.
His statement followed a recent revision of laws by the Supreme People’s Court and the Supreme People’s Procuratorate, which broadened the definition of money laundering to include cryptocurrencies, online game coins, and live streaming tips.
Yang underscored the myriad challenges that law enforcement agencies encounter when attempting to recover cryptocurrencies, pointing out the absence of uniform standards and regulations across various jurisdictions. This inconsistency complicates efforts to effectively track, seize, and return digital assets, as differing legal frameworks and technological capabilities create significant hurdles in the pursuit of justice.
“Although the law enforcement have tried a variety of disposal methods, due to the lack of unified standards, the implementation varies greatly from place to place,” he opined, adding:
A large amount of virtual currencies has been sealed off and cannot be converted into liquid funds, affecting the normal operation of economic activities.
He argued that a comprehensive set of guidelines is crucial for the secure and efficient liquidation of these assets. Yang also urged Chinese regulators to collaborate more closely with international counterparts, given the cross-border nature of digital currencies, to better address these challenges.
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