Police Scrutiny of Crypto Professionals in Hangzhou
Unverified reports regarding police scrutiny of crypto professionals in Hangzhou are sparking significant debate within China’s Web3 community, highlighting differing perspectives on the extent and nature of law enforcement’s actions.
Allegations by Mirror Tang
On June 9, Mirror Tang, the founder of the decentralized network ZEROBASE, took to X to allege that several individuals in the Hangzhou crypto scene were summoned for questioning at police stations. As per Tang’s claims, these individuals were instructed to bring their laptops and smartphones, ostensibly so that law enforcement could utilize forensic tools to examine chat logs, wallet transactions, and development documents.
Tang characterized these investigations as informal, noting the absence of legal summons or search records, yet emphasized that police were concentrating on aspects related to token issuance, fundraising, and operational roles. He suggested that the investigation was part of a broader initiative, commenting,
“The focus is on financial structures and flows rather than on isolated incidents.”
Tang linked this situation to Hangzhou’s historical role as an experimental hub for digital finance governance, indicating that this could be a precursor to national regulatory measures.
Contradicting Views from Jack Kong
Contradicting Tang’s assertions, Jack Kong, the CEO of Nano Labs and an influential figure in the Chinese Web3 arena, refuted the claims publicly. He stated that, to his knowledge, neither the Zhejiang region nor Hangzhou had initiated any extraordinary actions against blockchain professionals. His recent discussions with local authorities indicated no increased scrutiny in the sector, and he suggested that any specific incidents reported might be isolated and related to anti-fraud measures.
“If there are concerns, I encourage anyone to relocate to the Hangzhou-Hong Kong Science and Technology Building, the epicenter of our Web3 industry,”
Kong advised.
Community Concerns and Legal Background
Moreover, EnHeng, a former ZEROBASE employee, criticized the impact of Tang’s statements on the community, expressing dismay over the potential disruption to industry efforts. He indicated that the unfounded speculation could unjustly affect unrelated teams, such as YZi Labs.
As the community remains split on whether there was a coordinated enforcement action or merely misinterpretations of individual cases, the lack of official confirmation adds to the confusion. Legal uncertainties are a persistent issue for those involved in cryptocurrencies in mainland China, especially in light of the comprehensive bans on cryptocurrency trading and fundraising established since 2021. However, the enforcement of these prohibitions tends to vary by region, leaving industry players to navigate their compliance strategies amidst inconsistent regulation.
