A Chinese lawmaker has announced that there are some loopholes in the regulations for cryptocurrencies in the country and has proposed new measures.
A Chinese legislator has proposed amending Article 144 of the Criminal Procedure Law to make the interrogation and seizure of virtual currencies and other assets of suspects easier.
Jiang Fan stated that due to the illegal financial nature of cryptocurrency-related business activities, there is currently no specific regulation to deal with cases involving cryptocurrencies in China.
Jiang Fan, a delegate of the National People’s Congress and Chairman of the Board of Supervisors of Hunan Renren Law Firm, has suggested that the procedural system concerning virtual currencies needs to be urgently improved.
Jiang said, “Dealing with virtual currencies has become a crucial and challenging issue in judicial operations.”
Jiang noted that there is no unified regulation in the country regarding the implementation of compulsory measures such as the seizure and freezing of cryptocurrency assets related to legal cases.
He pointed out that the anonymity and hierarchy of virtual currencies make it difficult to monitor and audit transactions and complicate the investigation and collection of evidence.
According to Jiang, the significant economic value of cryptocurrencies can compensate for property losses to victims in criminal cases, prevent infringement of the rights and legitimate interests of victims, and provide opportunities for suspects to return stolen property and provide compensation, thereby obtaining leniency in punishments.
