Crypto Cybercrime: China’s Supreme Procuratorate Raises Concern on Increased Use

China’s Supreme Procuratorate has dragged crypto markets into the limelight again. According to a translated version of the website, the regulator has raised concerns over cryptocurrency’s increased involvement in cybercrimes. The scrutiny comes at a time when China is trying to tighten its grip over illicit crypto crimes and possibly stop them from happening.

China’s Supreme Procuratorate Raises Concerns Over Crypto Cybercrime

According to the Chinese Supreme Procuratorate, new forms of cybercrime utilizing blockchain technology and the metaverse are always evolving. The regulator has also pointed out how cryptocurrencies have also given rise to new sorts of illegal activities. Scams that involve cryptocurrencies have seen a new rise recently. Investors are usually scammed out of their assets by phishing links, fake crypto investments, and even fake websites.  The regulator also said that money laundering with cryptocurrency has gained popularity. It is now a common tool used by criminals to move money they don’t have.

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China Tightens Grip Over Illicit Crypto Activities

This scrutiny comes at a time when China is notching up its regulations to curb crypto cyber crimes.  Previously, Hong Kong raised concerns over WorldCoin’s iris identification, saying that it could be a threat to sensitive data.  China’s Supreme Procuratorate recently sentenced Zhao Dong, a well-known person in the cryptocurrency space, to seven years in prison for running illicit cross-border cryptocurrency transfers.

China is particularly concerned about new payment systems that have appeared in the Internet age and give authorities access to covert conduits for money transfers. Corrupt people in China are increasingly utilizing the “cold storage” feature of encrypted digital currency to avoid being discovered online. Using the money for cross-border transactions raises further money laundering issues, according to the expert.

Illicit Crypto Activities Drop in 2023, Still a Big Threat

A study published by Chainalysis claims that the amount of money received by unofficial cryptocurrency addresses decreased significantly in 2023. The value amounted to a total of $24.2 billion. However, one must note as always that these numbers are lower-bound estimates based on inflows to the unlawful addresses that are currently located. These totals will most likely be greater in a year with more illegal addresses and factor in their past behavior when estimating. Despite the lower number, more and more countries are becoming alert about regulating cyber crimes that involve digital assets. This also comes in the wake of a global recognition of taking steps to curb illegal activities related to the crypto sphere.