China's Urgent Need for a Recovery Plan on Illicit Digital Assets Involving Tether and Cryptocurrencies
China's Need for Standardized Procedures in Recovering Illicit Digital Assets
Authorities in China are scrambling to recover billions in illicit funds linked to virtual currencies like Tether and Bitcoin. Yang Kai, a legal expert from the East China University of Political Science and Law, warns that without standardized recovery methods for digital assets, law enforcement faces hurdles in managing these cases.
Challenges in Liquidating Virtual Currencies
Following law revisions by the Supreme People's Court, the inclusion of cryptocurrencies for money laundering efforts indicates a tightening grip on illegal financial activities. However, Yang notes that illicit virtual currencies currently cannot be auctioned or sold without violating regulations.
- Need for comprehensive guidelines.
- Challenges in determining the value of digital assets.
- Cross-border complexities in cryptocurrency regulations.
The Growth of Illicit Virtual Currencies
The surge in cryptocurrencies involved in criminal activities saw figures rise to 430.7 billion yuan (approx. US$60.5 billion) in 2023, marking a stark growth from previous years. Yang advocates for regulatory participation in the international arena.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.