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China Targets Cryptocurrency In Fight Against Corruption: Focus On Cold Storage, Virtual Currencies

Published 02/01/2024, 19:47
Updated 02/01/2024, 21:10
© Reuters.  China Targets Cryptocurrency In Fight Against Corruption: Focus On Cold Storage, Virtual Currencies

Benzinga - In a significant development, Chinese official media has highlighted the growing concern over corrupt officials using cryptocurrency cold storage to illicitly transfer and transact funds internationally.

This issue was a key focus at the annual meeting of the China Integrity and Legal System Research Association in 2023, where experts discussed the rise of new and hidden forms of corruption facilitated by virtual currencies and electronic gift cards, according to a report.

Experts at the meeting emphasized the urgent need for both legislative and technological advancements to effectively combat these emerging forms of corruption.

They noted the challenges in detecting and regulating corruption involving decentralized virtual currencies due to their anonymity and untraceability.

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The phenomenon of using encrypted digital currencies to evade online investigations and carry out international transfers was identified as a significant concern.

Liao Tianhu, Vice Dean of the Law School at Southwest University of Science and Technology, stressed the importance of public reporting and social supervision in combating corruption involving virtual assets.

Peng Xinlin, a professor at Beijing Normal University Law School, highlighted the necessity of a comprehensive approach to address these new corruption challenges in the digital age.

The annual meeting underscored the need to enhance legal and technological measures against the evolving nature of corruption in the digital era.

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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