Crypto Related Corruption
According to CryptoPotato, Chinese official media has raised concerns about corrupt officials employing sophisticated techniques to hide and transfer their illicit profits.
This issue was a key focus at the annual meeting of the China Integrity and Legal Research Association in 2023.
During the meeting, the association, which operates at a national level under the Ministry of Civil Affairs, discussed the growing use of blockchain technology and virtual currencies in facilitating new forms of corruption.
These methods are often challenging to trace and have presented significant obstacles to existing legal and regulatory frameworks.
Corrupt officials have been discovered utilizing “cold storage” methods to keep cryptocurrency addresses and private keys offline, effectively evading online scrutiny.
These techniques involve employing external devices such as hard drives and network disks to transfer cryptocurrencies out of the country for trading and redemption.
![Crypto Related Corruption](https://speednewsmedia.com/wp-content/uploads/2024/01/Bitcoin-0-1-1024x576.webp)
This issue was highlighted by Zhao Xuejun, an associate professor at Hebei University Law School.
Mo Hongxian, a professor at Wuhan University Law School, highlighted the unique challenges brought about by the Internet society.
These challenges include characteristics such as cross-time and space interactivity, decentralization, and information-sharing.
These features make it easier for corrupt gains to be transferred through methods like electronic red envelopes and gift cards, effectively moving corruption into the digital realm.
In November 2023, the Central Commission for Discipline Inspection and the State Supervision Commission addressed the issue of supervision evasion through the acceptance of electronic consumer cards, delivery coupons, and other invisible forms of electronic transfers in corruption cases.
These practices were classified as new forms of corruption.
The 20th National Congress of the Communist Party of China and subsequent reports have emphasized the importance of combating these emerging types of corruption.
Legal scholars, such as Liao Tianhu from Southwest University of Science and Technology, advocate for stronger legal and regulatory frameworks to address the anonymity and tracking difficulties associated with online virtual property.
![Crypto Related Corruption](https://speednewsmedia.com/wp-content/uploads/2024/01/bfe2f19d4ac842688ca61e42cfd355f7-1-1024x576.webp)
Peng Xinlin, a professor at Beijing Normal University Law School, asserts that although these new forms of corruption may be concealed and indirect, they are equally damaging.
Peng further emphasizes the urgent need for improved supervision and legal frameworks, particularly in areas with a high likelihood of corruption, such as project approvals and resource transactions.
During the China Integrity and Legal Research Association meeting, experts proposed several measures to tackle this issue.
These measures include enhancing legislation related to corruption crimes, utilizing smart technology in investigations, and improving the understanding of virtual properties like Bitcoin and Ethereum within the legal field.
Additionally, there is a call for social and public opinion supervision to foster a transparent and accountable social environment.
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