- Communist Party of China combats fraudulent practices using advanced technologies like cryptocurrency and AI.
- Government targets overseas telecom companies orchestrating deceptive schemes for fraud.
- Hong Kong issues license to HashKey and OSL for crypto trading, offering retail accessibility.
The Communist Party of China has taken a firm stance and issued a determined declaration, committing to combat the surging tide of fraudulent practices facilitated by modern technologies, including cryptocurrency and artificial intelligence (AI). As per a report by the local publication Global Times on August 5, the government is directing its efforts towards overseas telecommunication companies allegedly using advanced technologies to orchestrate deceptive schemes, intending to entice local individuals into engaging in fraudulent activities.
The resolution was adopted in a recent plenary session where the Chinese Central Political and Legal Committee underscored the utmost importance of implementing a comprehensive governance strategy and a strong legal framework to combat the infiltration of illegal activities in the country’s digital domain.
According to reports, the identified fraudulent schemes involve foreign entities employing deceptive tactics, such as disguising themselves as attractive job opportunities to trap unsuspecting victims.
Amidst these developments, the accused fraudulent actors have been alleged to exploit cutting-edge technologies, including blockchain, metaverse, cryptocurrency, and artificial intelligence, in order to craft increasingly sophisticated and covert criminal tools. To effectively address this transnational threat, the ruling party has strongly endorsed strengthened international cooperation in law enforcement, encouraging collaborative efforts to counter these activities.
Furthermore, alongside law enforcement measures, the Chinese government is intensifying public awareness campaigns and educational programs. These initiatives aim to equip individuals, particularly the younger generation who may be more vulnerable to such schemes, with the knowledge and tools necessary to recognize and prevent telecommunications and network fraud.
On the other hand. Bitcoin’s price doubled since the year began but has declined amid market uncertainty, affecting other top cryptocurrencies like Ethereum, BNB, XRP, Dogecoin, Cardano, Solana, Tron, and Polygon. Elon Musk denied Twitter’s potential impact on the market. Meanwhile, Hong Kong issued its first crypto licenses, allowing exchanges like HashKey and OSL to serve retail customers in the region.
OSL’s chief executive, Hugh Madden, highlighted the importance of being a first-mover in this space, stating that traders can now trade Bitcoin and Ethereum on their platform thanks to the newly acquired license. This development offers increased accessibility and trading options for customers. Additionally, according to a HashKey spokesperson,
“[The exchange] successfully underwent a simplified process to obtain the license upgrade … to expand its business scope from serving professional investors to retail users, fulfilling market demand for a licensed platform that offers users a safer and simpler process for buying and storing cryptocurrencies.”
HashKey rep
Indeed, China has identified cryptocurrencies as a potential avenue for fraudulent activities, leading to a strained relationship with the crypto sector. The government’s strict approach has included banning cryptocurrency-related activities, which has, in the past, triggered considerable market sell-offs.
However, there have been recent indications suggesting a potential shift in China’s stance towards cryptocurrencies. For example, as reported by Finbold, China’s Supreme Court released guidelines concerning cryptocurrency-related disputes, indicating that settling a debt using a small amount of digital assets would be considered legally valid if both parties involved agreed to the arrangement. This development hints at a potential easing of the country’s tough stance on cryptocurrencies.
