People's Court Daily: Virtual currency disposal can explore overseas compliance realization and "black hole address" destruction mechanism

PANews reported on June 19 that the People's Court Daily recently published an article titled "Disposal of Virtual Currency Involved in Criminal Cases: Challenges, Innovations and Judicial Responsibilities". The article pointed out that virtual currency has corresponding property attributes, and a consensus has basically been formed in judicial practice. At present, some courts have also explored the disposal procedures for virtual currency involved in cases. For example, Shenzhen Futian District has established a judicial cross-departmental property management platform for involved cases, adopting a new property management model of "property static and information flow" to achieve "separation of management and administration". In addition, it is also possible to explore the creation of a judicial-specific wallet. After the private key is encrypted in sections, it will be kept in sections by the case-handling agency and the custodian agency to ensure the safety of the seizure and custody of virtual currency.

For those that need to compensate the victim for losses or confiscate the virtual currency, in order to balance the demand for handling the virtual currency involved in the case with the mainland's regulatory policies, it is possible to explore entrusting a qualified third-party institution under the registration and supervision of the People's Bank of China, the Foreign Exchange Administration and other departments, and in jurisdictions where virtual currency transactions are legal overseas, such as Hong Kong, through a compliant licensed trading platform, to convert the virtual currency into legal currency at market prices. After cashing out overseas, refer to the provisions of the State Administration of Foreign Exchange's "Letter on the People's Court Opening Foreign Exchange Accounts and Handling Foreign Exchange Receipts and Payments in Foreign-Related Judicial Activities". Virtual currencies that are used for crimes and endanger national security and public interests, such as privacy coins, can be sent to "black hole addresses" and destroyed and permanently withdrawn from circulation.