Chinese police: The virtual currency involved in the case is now sold through the Hong Kong Exchange and turned over to the state treasury
The Beijing Municipal Public Security Bureau launched the "New Mechanism for Virtual Currency Involved in Cases". Virtual currencies confiscated in crimes can be sold and liquidated through Hong Kong's compliance exchanges and turned over to the national treasury.
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The Beijing Municipal Public Security Bureau recently announced that it has reached a cooperation with the Beijing Equity Exchange to solve the problem of realizing the virtual assets seized by the police in China. Now, through Hong Kong’s compliance exchange, the recovered, seized, and confiscated digital assets are sold and turned over to the national treasury.
China’s New Model for the Disposal of Virtual Assets Involved in Cases
China’s law enforcement agencies previously faced two major difficulties in the disposal of virtual assets involved in cases: “the inability to be directly liquidated within China” and “the high risk of cross-border disposal or the lack of legal sources”, which affected the effectiveness of the recovery of legally involved assets.
The Legal Affairs Corps of the Beijing Municipal Public Security Bureau announced today that it has signed a "Cooperation Framework Agreement on Virtual Currency Disposal Business Involved in the Case" with the Beijing Equity Exchange (hereinafter referred to as the Beijing Exchange), which will include the virtual currency involved in the "physical surrender".
The process is:
- The public security agency entrusts the virtual currency involved in the case to the North Exchange
- The North Exchange selects a professional service agency to conduct technical inspection, reception and transfer
- Then it is publicly realized through a Hong Kong compliance licensed exchange ,
- After the foreign exchange settlement is approved by the State Foreign Exchange Administration, the proceeds are transferred to the special account of the public security agency for the money involved in the case
- Finally turned over to the Chinese treasury
It is reported that this model has been successfully applied to a case in the Shunyi Public Security Bureau, proving that the mechanism is feasible.
