Overview of Virtual Currency in Judicial Context
In a recent editorial for The Peoples Court Daily, Zhao Liang of the Shenzhen Intermediate People’s Court in Guangdong Province addressed the handling of virtual currency within the justice system, highlighting its recognized property characteristics.
Judicial Consensus on Virtual Currencies
The article discusses the growing consensus in judicial settings regarding the treatment of virtual currencies, particularly in cases requiring victim restitution or asset forfeiture. To align with regulatory frameworks, it suggests considering the involvement of a qualified third-party organization.
Facilitating Legal Transactions
This entity could, with oversight from the People’s Bank of China and the Foreign Exchange Administration, facilitate the conversion of virtual currencies into legal tender. This process would be conducted at prevailing market rates via licensed trading platforms located in jurisdictions like Hong Kong, where virtual currency exchanges are permitted.
Guidelines for Financial Activities
Subsequently, the procedures outlined by the State Administration of Foreign Exchange regarding foreign currency transactions in judicial matters would guide any financial activities.
Managing Risky Cryptocurrencies
Additionally, the editorial emphasizes that certain cryptocurrencies linked to criminal activities or which pose risks to national security may be permanently rendered inactive by sending them to untraceable addresses, effectively eliminating them from circulation.
