In an attempt to combat the growing number of cybercrimes, the Supreme People’s Procuratorate of China (SPP) has focused on criminals using blockchain technology projects and metaverse regarding illegal activities. The SPP expressed concerns about the augment in online fraud, online violence and personal data breaches.
Blockchain technology: a breeding ground for criminal activity?
SPP has seen a significant augment in the number of cybercrimes committed on blockchains and in the metaverse. Criminals are increasingly using cryptocurrencies to launder money, making it hard to track their illicit assets. Additionally, cybercrime-related telecommunications fraud charges increased by 64 percent year-on-year.
While blockchain-related crimes are on the rise, established crimes such as gambling, theft, pyramid schemes, and counterfeiting have also expanded into cyberspace. Charges related to online theft increased by almost 23%, while charges related to online counterfeiting and selling inferior goods increased by almost 86%.
China is cracking down on investment fraud
Prosecutors’ offices were filed from January to November charges against 280,000 people involved in cybercrimes, which means an augment of 36% year on year and is responsible for 19% of crimes, the highest prosecutor’s office reported.
Zhang Xiaojin, director of the Fourth Chief Prosecutor’s Office of the People’s Procuratorate, warned citizens and digital asset participants against investment scams in the local crypto economy.
Xiaojin highlighted the emergence of fresh types of cybercrime using tricks such as metaverse platforms, blockchain and binary options. Virtual currencies have become a breeding ground for such activities, which requires increased vigilance.
China’s efforts to crack down on metaverse crimes coincide with a surge in illegal activity in Hong Kong. Hong Kong, however, has taken a different approach, implementing cryptocurrency-friendly regulations to standardize the digital asset ecosystem and protect investors without stifling innovation.
Bitcoin (BTC) is currently trading at $51.801. Chart: TradingView.com
The intersection of blockchain technology and cybersecurity
Blockchain technology has proven to be a promising solution for increasing cybersecurity. Its decentralized and distributed ledger system operates on the principles of transparency, immutability and cryptographic security. By leveraging blockchain technology, you can strengthen data integrity and authentication, improve identity management, and secure IoT ecosystems.
Blockchain ensures data integrity and authentication through the apply of cryptographic algorithms. This prevents malicious actors from manipulating confidential information. In sectors such as finance, healthcare and supply chain management, where data accuracy and trust are crucial, blockchain technology provides a secure foundation.
As China’s Supreme People’s Procuratorate increasingly focuses on blockchain and metaverse criminals, it is becoming clear that the intersection of technology and cybersecurity presents both challenges and opportunities. As cybercrime continues to evolve and adapt, blockchain technology has enormous potential to strengthen data integrity, secure identity management, and protect IoT ecosystems.
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