China’s Supreme People’s Procuratorate (SPP) is taking action against cybercriminals who exploit blockchain technology and metaverse projects for illegal activities. The SPP is concerned about the growing number of online fraud, cyber violence, and personal information breaches.
The SPP has observed a rise in cybercrimes committed using blockchain and within the metaverse. Criminals are utilizing cryptocurrencies for money laundering, making it challenging to trace their illicit wealth. Telecom fraud charges related to cybercrimes have increased by 64% year-on-year.
In addition to blockchain-related crimes, traditional offenses such as gambling, theft, pyramid schemes, and counterfeiting have also moved into cyberspace. Charges related to internet theft have risen by nearly 23%, while charges related to online counterfeiting and sales of inferior goods have surged by almost 86%.
From January to November, procuratorates filed charges against 280,000 individuals involved in cybercrimes, marking a 36% increase year-on-year and accounting for 19% of criminal offenses. Zhang Xiaojin, the director of the Fourth Procuratorate of the Supreme People’s Procuratorate, has cautioned citizens and digital asset participants about investment scams in the local crypto economy.
Xiaojin highlighted the rise of new types of cybercrimes using gimmicks like the Metaverse, blockchain, and binary options platforms. Virtual currencies have become hotbeds for such activities, necessitating increased vigilance. China’s crackdown on metaverse-related crimes aligns with a surge in illicit activities in Hong Kong. However, Hong Kong has taken a different approach by implementing crypto-friendly regulations to standardize its digital asset ecosystem and protect investors without stifling innovation.
Blockchain technology has emerged as a promising solution to enhance cybersecurity. Its decentralized and distributed ledger system operates on the principles of transparency, immutability, and cryptographic security. By leveraging blockchain technology, data integrity and authentication can be strengthened, identity management can be enhanced, and IoT ecosystems can be secured.
Blockchain ensures data integrity and authentication through cryptographic algorithms, making it nearly impossible for malicious actors to tamper with sensitive information. In sectors like finance, healthcare, and supply chain management, where data accuracy and trust are crucial, blockchain technology provides a secure foundation.
As the Supreme People’s Procuratorate in China escalates its focus on blockchain and metaverse criminals, the intersection of technology and cybersecurity presents both challenges and opportunities. While cybercrimes continue to evolve and adapt, blockchain technology holds significant potential in fortifying data integrity, securing identity management, and protecting IoT ecosystems.
In conclusion, China is taking proactive measures to combat cybercrimes involving blockchain technology and metaverse projects. The rise in online fraud and illicit activities underscores the importance of enhancing cybersecurity measures and leveraging innovative solutions like blockchain to protect sensitive data and secure digital ecosystems. By staying vigilant and adopting advanced technologies, countries can mitigate the risks posed by cybercriminals and safeguard their digital infrastructure.
