Chinese Lawmaker Introduces a New Proposal on Cryptocurrencies

Chinese Lawmaker Presents a New Plan for Dealing with Cryptocurrencies

A member of the Chinese parliament has put forth a proposal to amend Article 144 of the country’s Code of Criminal Procedure, in an effort to facilitate the interrogation and freezing of suspects’ digital currencies and other assets. The lawmaker argues that the current system faces challenges in capturing, storing, and evaluating virtual currencies.

Jiang Fan, a deputy of the National People’s Congress and chairman of Hunan Renren Law Firm, emphasized in an interview with the “Rule of Law Daily” that the country urgently needs to improve its procedures for handling virtual currencies involved in legal cases. According to Jiang, the unique characteristics of virtual currencies, such as their difference from traditional assets, pose significant obstacles to existing institutional arrangements, investigative methods, and asset disposal techniques.

Jiang further highlighted the absence of unified regulations concerning mandatory measures like seizing and freezing virtual currencies related to criminal activities. He explained that the anonymity and decentralized nature of cryptocurrencies make it challenging to monitor and audit transactions, complicating investigations and evidence collection.

The lawmaker pointed out that while the circulation of virtual currencies is banned in China, the practical need to dispose and realize these assets in criminal cases creates a paradox. Jiang believes that the evaluation of seized virtual currencies can serve the interests of multiple organizations and that these currencies hold hidden economic value. This value, he suggests, could compensate victims for their losses and protect their legitimate rights, while also offering criminals the opportunity to return stolen assets and make reparations, thus potentially leading to leniency in their punishment.

Disclaimer: This text does not provide investment advice.