A Brief View on Combating Crimes in the Field of Blockchain Virtual Digital Currency

A Brief View on Combating Crimes in the Field of Blockchain Virtual Digital Currency

Blockchain technology itself I think is a technology that can promote the development of society and change people’s concept of life, and has a very promising development application. However, since blockchain technology has been applied to virtual digital currency by some people, it has been mistaken by some unknown people that blockchain is virtual digital currency and virtual digital currency is blockchain, which makes a noble concept become a synonym of fraud.

In our country, there are numerous illegal crimes involving blockchain virtual digital currency, and the methods are unpredictable and have a tendency to intensify. I have participated in the investigation of the virtual currency hero chain case, which was the first case with certain influence in the country at that time, and has been reported by Xinhua News Agency and People’s Daily. At the same time also accumulated some experience, now on how to combat this illegal criminal behavior, and share with you some of their own superficial views: First of all, I think we need to understand why our country does not recognize the attitude of virtual digital currency: virtual currency is not issued by the monetary authorities, does not have the monetary properties of legal compensation and compulsory, is not a real sense of money, should not and can not be used as money in the market It is not a currency in the real sense and should not and cannot be used as money in the market. Secondly, because of the blockchain technology applied in virtual currencies, the blockchain is decentralized, distributed bookkeeping, and non-tamperable records, and is used by some “dark market” people for money laundering, illegal financing, fraud, drug and arms trafficking, and even bribery and other criminal activities.

Since virtual currency is decentralized and anonymous, it is easy to be separated from the supervision of national financial and taxation departments, which makes it difficult to trace, so that some criminals can escape from the crackdown and cause the loss of national funds and taxes. In the process of investigating the hero chain case, I also deepened my understanding of the virtual currency practice circle: it is a place full of speculators, scammers, swarms of devils, and endless fraudulent tricks. The vast majority of project parties and bankers in the cryptocurrency circle have fled or moved abroad after cutting the leeks, and their behavior is also highly susceptible to illegal fundraising, financial fraud and pyramid schemes, illegal issuance of securities, illegal sale of token coupons and other illegal and criminal activities.

On September 4, 2017, the People’s Bank of China and other seven departments issued the “Announcement on Preventing the Risk of Token Issuance and Financing”, commonly known as the “September 4 Announcement”, which was the first shot of the country to crack down on the virtual currency market. At that time, many virtual currency trading platforms have withdrawn from China, starting a process from chaos to governance, which is a watershed in the virtual currency field. It is such an easy place to breed illegal crimes, many citizens mistakenly entered the cryptocurrency circle property was cheated, once reported no way. Some public security authorities believe that virtual currency is not recognized in China, coupled with the inability to verify the price, of course, can not be filed. The basis for not filing a case is the third provision of the “September 4 Announcement”: “From the date of this announcement, any so-called token financing trading platform shall not engage in the exchange business between legal tender and tokens or virtual currencies, and shall not trade or act as a central counterparty to trade tokens or virtual currencies. It shall not provide pricing, information intermediary and other services for tokens or virtual currencies.” In fact, I think the above view is a misunderstanding or even misinterpretation of the “September 4 announcement” issued by the seven departments of the state public security organs.

The reasons are as follows: First of all, China is the issuance of tokens (ICO) and suspected related illegal and criminal behavior is to crack down on. The “September 4 Announcement” is issued to deter and combat criminals, on the other hand, to remind some citizens and investors not to participate, to prevent being duped. Its purpose is also to protect the legitimate property of citizens from being infringed. Since the starting point of the “September 4 Announcement” is to protect citizens’ legitimate property from being infringed, but why some public security organs do not file a case against those who report the crime because the “September 4 Announcement” stipulates that virtual currency cannot be valued? Why do some public security authorities not file a case when a citizen’s legal property is infringed upon, on the grounds that the “September 4 Announcement” stipulates that virtual currency cannot be valued? Wouldn’t that be contrary to the original intent of the “September Fourth Proclamation”? If the “September 4 Announcement” has become the basis for not filing a case, will the criminals not become more and more rampant? Will it not be able to combat and stop crime, but will instead encourage the occurrence of crime?

So when the citizens’ virtual property is infringed, can the virtual currency be priced and valued? I personally believe that it can be priced and valued for the following reasons: First of all, I believe that Chinese law does not explicitly prohibit individual citizens from buying and selling virtual currency. In China, virtual currency is considered to be a specific virtual commodity. Li Bo, deputy governor of the People’s Bank of China, pointed out at the Digital Payment and Digital Currency sub-forum at the Boao Forum for Asia 2021 Annual Conference on April 18 that Bitcoin and stablecoins are crypto assets. Crypto assets are investment options, which are not currencies per se, but alternative investments. The main role crypto assets may play in the future is as an investment tool or an alternative investment. Li Bo said that many countries, including China, are studying what kind of regulatory environment should be matched with such an investment tool. Until we understand what kind of regulatory rules are needed, we will continue to maintain the current initiatives and practices. Li Bo believes that in the future, any stablecoin that hopes to become a widely used payment instrument must be subject to strict regulation, just as banks or quasi-banking financial institutions are subject to strict regulation. Li Bo’s speech is seen as a sign of gradual recognition of crypto assets under the premise of accepting strict state regulation. Whether virtual currency is seen as a virtual commodity, crypto asset or alternative investment, it has a market and is recognized, then it must have a price. At least among the people who recognize it, there is a price. Let’s not discuss whether this “price” is a price or a value. Since it has a price, it is a kind of property. When the virtual goods and crypto assets held by citizens are infringed upon, they should be protected by law as a matter of course. Then a new question arises: How to determine the price of virtual goods and crypto assets? Because the virtual currency market is very volatile, with no cap on the rise and no bottom on the fall, and because it is after all a new thing, even the price department is at a loss as to what to do with such certified prices.

I have reviewed some cases in the country, before the “September 4 announcement”, the public security in Guangdong directly adopted the way of the local price department price office to verify the price. I have summarized the current practices of some public security organs around the country in handling cases involving virtual currencies, and I think there are three approaches worthy of reference and promotion.

The first is to refer to the list of virtual digital exchange quotations that have a certain popularity in the international arena, which have the daily quotation price records of various virtual currencies, and calculate the price by the quotation at the point in time when the transaction to transfer the currency occurred.

The second method is to have a third-party organization conduct a judicial accounting appraisal according to industry regulations and issue a price report to determine the price, such as the case of the hero chain, which was the first big case that shocked the national cryptocurrency circle.

The third method is also the most straightforward approach, price appraisal issued by the price office of the price department, such as the case of PULSTOKEN, the largest virtual currency pyramid scheme in the country.

In conclusion, I think that virtual currency as a new thing, it is widely known and trusted by some people, it proves its strong vitality. It can exist that is justified, it is recognized that has a market, it has a market that has a price. We can’t just write it off, but should bring it under effective state regulation to guide and develop in the right direction.

On May 19, 2021, the day I am writing this article, it was a bloody day in the cryptocurrency world, with all virtual currencies plummeting across the board, and “5.19” will go down in the history books of the cryptocurrency world. The reason for this is not only the background of the international environment, but also the announcement of the three national departments, but the announcement is more of a reminder than anything else. I believe that the state is laying out and macro-controlling how to introduce relevant laws and judicial interpretations to regulate the management of the virtual currency market, which may also provide a good environment for the introduction of digital RMB. Where will it go from here? We’ll see!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/a-brief-view-on-combating-crimes-in-the-field-of-blockchain-virtual-digital-currency/
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