China’s money-laundering crackdown needs ‘urgent’ plan to recover illicit digital assets
Growth of virtual currencies such as bitcoin and ether used in crimes has been ‘phenomenal’, law professor says
China needs to “urgently” standardise ways to recover billions of yuan worth of funds from confiscated digital assets, according to a legal expert, following last month’s revision of laws targeting money laundering using virtual currencies.
In an article published on Tuesday in the People’s Court Daily, a publication owned by the Supreme People’s Court in China, Yang Kai, a professor with the East China University of Political Science and Law, said law enforcement authorities faced difficulties in safely recuperating virtual currencies as part of criminal cases.
The revision would help China to bolster a crackdown on illegal activities and address cryptocurrency-related risks, a measure that would also align its practices with global standards as it faces stricter international scrutiny.
China does not recognise virtual currencies as legal tender and strictly prohibits their circulation in the market.
Digital currencies also cannot be auctioned or sold like other types of assets as it would violate Chinese laws and regulations, Yang added.
