GuShiio.com This article will discuss the main difficulties faced by public security organs in virtual currency cases and provide best practice solutions for legal compliance.
With the development of blockchain technology, virtual currency is widely used around the world, but it is also used by criminals to carry out criminal activities such as fraud, money laundering, and illegal fund-raising. When handling virtual currency cases, public security agencies face many legal, technical and cross-border law enforcement challenges. Especially because virtual currency hashighly liquid、Large value fluctuations and storage difficultiesand other characteristics, causing public security organs to seize virtual currency,Rapid disposal measures are often required。This article will discuss the main difficulties faced by public security organs in virtual currency cases and provide best practice solutions for legal compliance.
1. The main difficulties faced by public security organs in handling virtual currency cases
1. Difficulties in establishing a case and applying the law
At present, my country’s legal supervision policies on virtual currency are constantly updated, but there is still a lack of targeted criminal law regulations. When investigating cases, public security organs usually file cases based on the crimes of fraud, illegal business operations, organizing pyramid schemes, money laundering, etc. in the Criminal Law. However, specific cases may involve multiple crimes, making characterization difficult.
2. Transaction anonymity and difficulty in traceability
Virtual currency transactions rely on blockchain technology and use a decentralized method to transfer money. Some currencies (such as Monero and Zcash) also have anonymity, making it more difficult to trace funds. In addition, criminals use methods such as jumping wallets, multiple address transfers, and Tornado Cash to hide the flow of funds, further increasing the difficulty of investigation by public security organs.
The suspect cleverly concealed assets by storing virtual currency assets in his wallet account. During the investigation of a case, it is often difficult for public security organs to obtain mnemonics or private keys, resulting in the inability to directly seize the relevant wallet. In addition, the private keys of some hidden addresses may be grasped by multiple suspects. Even if funds are found to have been deposited, how to effectively implement the seizure still faces huge challenges.
4. Fund freezing is full of challenges
When it is impossible to obtain the private key and directly seize assets, freezing funds becomes a more feasible measure. However, unlike traditional bank accounts, the public security organs cannot directly freeze the virtual currency involved in the case through banks. Instead, they need to rely on exchanges or stablecoin issuers (such as Tether and Circle) to assist in freezing. This not only requires the provision of legal and compliant judicial documents, but also requires an in-depth understanding and precise application of blockchain technology to ensure the effectiveness of the freezing measures.
5. Lack of compliance channels for judicial disposal
In the judicial disposal process, there is still a lack of unified regulations on how to handle frozen virtual currency in accordance with laws and regulations. Even if the public security organs successfully freeze the virtual currency obtained from crime, there are still many uncertainties in the process of subsequent compliance realization (such as sale and auction) and return to victims. Due to the high liquidity and other characteristics of virtual currency, relying on a complete, compliant and executable virtual currency processing solution is crucial to improving the efficiency of asset processing in virtual currency cases.
2. Suggestions on virtual currency handling regulations
In order to maximize the value of the assets involved in the case, public security organs usually need to, within the scope permitted by law,Start disposal procedures as soon as possibleEnsure that virtual currency can be reasonably realized or processed under appropriate market conditions.
1.“Opinions on Further Standardizing the Disposal of Property Involved in Criminal Proceedings”
The opinion clearly states that for specific property involved in the case, especially those Difficult storage conditions and large market price fluctuationsAssets, public security organs can carry out the investigation in accordance with the law look-ahead。Especially in the management of high-risk assets such as virtual currency, this regulation provides a legal basis for public security organs to handle flexibly.
2.“Regulations on Procedures for Handling Criminal Cases by Public Security Organs”
This regulation provides clear guidance on the disposal of property involved in the case, pointing out that assets Difficulties in management and high storage costsIn the case of, the public security organ may proceed with the handling within legal procedures.
3.“Measures for the Management of Confiscated Property”
Although it mainly focuses on the management of confiscated property, it also involves the management ofMarket prices fluctuate greatly, storage is difficult or expensiveAssets can be disposed of first in accordance with the law.
4.“Several Provisions on the Management of Property Involved in Cases by Public Security Organs”
This regulation further strengthens the management mechanism for property involved in the case and clearly points out that when property is involved, High liquidity or high management costsWhen necessary, timely measures should be taken look-aheadmeasures.
These regulations fully reflect the clear attitude and determination of laws and regulations to deal with assets involved in the case with large price fluctuations, difficult storage, and excessive storage costs.
3. Best practices for public security organs in handling virtual currency cases
Based on the above difficulties in handling cases, how to enhance the improvement of blockchain technology and blockchain traceability capabilities, how to carry out legal compliance processing, and improve case handling efficiency. BitJungle Technology Co., Ltd. was established in 2018. It is deeply involved in the field of blockchain security and focuses on blockchain traceability and asset compliance processing.
Self-developed by BitjungleZhong Kui systemCombine big data analysis, machine learning and multi-chain cross-verification technology to achieve efficient and accurate blockchain asset tracking. By studying domestic and foreign regulatory policies, the company has established legal and compliant virtual currency processing channels to ensure the efficient execution of the entire process of cases from chain traceability, risk identification to final asset compliance disposal, helping to improve case handling efficiency and providing professional services to the industry. blockchain security solution.
BitJungle virtual currency processing solution focuses on the following advantages:
● BitJungle Technology Co., Ltd. serves asPartner of the licensed exchange in China Hong KongStrictly abide by international regulatory standards, China laws and regulations and fund anti-money laundering regulations to ensure compliance and safety of all operations.
● With its rich experience in solving cases, BitJungle independently developed the Zhongkui Big Data Platform, which provides multi-dimensional blockchain fund analysis capabilities and greatly reduces the analysis threshold for case handlers. At present, the system has been put into use in public security agencies in many places, providing a basis for law enforcement work.provide strong technical support。
● The company is deeply involved in the field of blockchain security, has strong capabilities to detect complex blockchain cases, and is able to efficiently carry out cross-border asset recovery, key clue breakthroughs and evidence acquisition. Its public affairs team can provide on-site case analysis support and has successfully assisted the public security bureau in detecting many major cases, including cases supervised by the Ministry of Public Security, and has passedZhong Kui systemEmpowering law enforcement agencies to achieveFull-process ability to solve blockchain cases from 0 to 1。
● At the same time, the company promotesmargin systemTo ensure the absolute safety of assets to be processed by public security organs, it can guarantee tens of millions of asset disposal transactions at one time, and help improve fund safety management capabilities.
● BitJungle is always committed to buildingA fully traceable, traceable and auditable compliance solution, provide professional support to law enforcement agencies and financial security.
3. Write it at the end
With the increase in virtual currency cases, public security organs are facing difficulties in law enforcementLegal application, fund tracking, asset disposal, cross-border cooperationand other problems. To improve the efficiency of detection of blockchain cases, we need to continuouslyimprove laws and regulations, and useBitterjungle like thisTechnical support from blockchain security companies, relying on“Zhong Kui” big data systemImprove on-chain traceability and fund analysis capabilities to promote case investigation more efficiently, and ensure the disposal of virtual currency involved in the case through the BitJungle virtual currency processing planLegal, compliant and safe disposal.
