Beijing Police Establishes New Mechanism for Handling Virtual Currency-related Cases, Including It in the Category of "Physical Seizure"

BlockBeats News, June 5th, according to the Beijing Municipal Public Security Legal Public Account, the Beijing Municipal Public Security Bureau Legal Affairs Detachment and the Beijing Property Rights Exchange (hereinafter referred to as the "North Exchange") established a cooperation mechanism for the disposal of virtual currency involved in cases, jointly signed the "Cooperation Framework Agreement for the Disposal of Virtual Currency Involved in Cases," and included the virtual currency involved in cases in the category of "physical handover." The article indicates that in the face of the increasing incidence of virtual currency crimes in recent years, and the practical problem in law enforcement of "the virtual currency involved in cases cannot be directly disposed of and realized in the country" and the risk of cross-border disposal, the Municipal Public Security Bureau Legal Affairs Detachment and the North Exchange further expanded the cooperation and disposal field. They conducted full research and demonstration on this special involved asset from the perspective of policies, regulations, and operational pathways, explored a new channel for overseas disposal, namely: the public security organ entrusts the physical form of the involved virtual currency to the North Exchange for disposal. After accepting the entrustment of the public security organ, the North Exchange designates a professional service organization to carry out operations such as detection, receipt, and transfer of the involved virtual currency, and publicly realize the sale through a compliant and licensed exchange in Hong Kong. After completing the national foreign exchange management approval procedures, the proceeds will be remitted to the special account for involved funds of the public security organ and handed over to the national treasury. Currently, this model has been successfully applied to dispose of the virtual currency involved in a case handled by the Shunyi Public Security Sub-Bureau.