Chinese Officials Ramp Up Efforts Against Crypto Corruption, Urge Stronger Legal Measures

    Chinese authorities address the rising threat of corruption involving cryptocurrencies, emphasizing the need for enhanced legal measures. The 2023 annual meeting of the China Integrity and Legal Research Association focuses on the challenges posed by advanced methods used by corrupt officials, prompting calls for stricter regulations.

    Chinese officials are intensifying efforts to combat a surge in crypto-related corruption, a focal point at the 2023 annual meeting of the China Integrity and Legal Research Association. The use of blockchain technology and virtual currencies by corrupt officials presents challenges to existing legal frameworks. Notably, the adoption of “cold storage” methods allows the offline storage of cryptocurrency addresses and private keys, evading online scrutiny.

    Experts, including Zhao Xuejun from Hebei University Law School, highlight the utilization of hard drives and network disks to transfer cryptocurrencies out of the country for illicit activities. The Internet society’s characteristics, such as decentralization and information-sharing, enable corrupt gains to be easily moved through electronic red envelopes and gift cards, ushering corruption into the digital domain.

    Recent reports from the Central Commission for Discipline Inspection and the State Supervision Commission classify practices like accepting electronic consumer cards as new forms of corruption. Legal scholars, like Liao Tianhu and Peng Xinlin, emphasize the urgency of stronger legal frameworks to address the complexities associated with online virtual property.

    The 20th National Congress of the Communist Party of China advocates for robust laws in combating these evolving corruption types. Proposed measures include refining legislation, leveraging smart technology in investigations, and enhancing legal comprehension of virtual properties like Bitcoin and Ethereum. Experts also stress the importance of social supervision to foster transparency and accountability in the fight against corruption.

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