Because Crypto Fraud Cases Are Getting Sharper, China Is Urged To Immediately Strengthen Regulations

Because cases of crypto fraud are increasingly mushrooming, China is urged to immediately strengthen regulations (Photo; Doc. Cryptogenic)

JAKARTA - China is now under pressure to immediately strengthen regulations related to the recovery of illegal digital assets. This pressure comes as criminal cases involving crypto assets such as Bitcoin and Ethereum increase. Yang Kai, a professor of law from East China University of Political Science and Law, revealed in an article published in the People's Court Daily, the official media of the Chinese Supreme Court, that China does not yet have an integrated standard to manage and recover crypto assets confiscated from crime.

According to Yang Kai, quoted from Bitcoin.com News, the uniformity of this procedure is a big challenge for law enforcement officials. They have difficulty tracking and confiscating digital assets spread across various jurisdictions with different regulations. Many virtual assets confiscated are still irreversible into liquid funds, disrupting the smooth running of economic activity," said Yang Kai. According to him, this has a significant impact on law enforcement efforts, where assets that could have been utilized were actually trapped because of the absence of clear and uniform regulations.

In recent times, the Chinese government has expanded the definition of money laundering to include digital assets such as crypto assets and online game coins, following a legal revision by the Supreme Court and the Attorney General's Office. However, Yang Kai believes this step is not enough. He stressed that more comprehensive guidelines and international cooperation efforts are needed to address the complexity that arises from the cross-border characteristics of digital assets.

In addition to domestic regulations, Yang also encourages China to improve coordination with other countries in managing digital assets. Given the global nature of crypto, cross-border collaboration is considered important to create effective regulations, avoiding legal vacancies that allow criminals to escape responsibility.

Along with the continued development of blockchain technology and the use of cryptocurrencies around the world, China is at a crucial point to determine strategic steps in regulating confiscated digital assets. Without clear regulations, legal chaos will continue to be an obstacle, not only for law enforcement, but also for future digital economic stability.