China implements aggressive measures to fight cryptocurrency and artificial intelligence fraud, focusing on international collaboration and public education.
The Communist Party of China has announced its firm commitment to address the growing wave of fraudulent activities carried out through emerging technologies such as cryptocurrency and artificial intelligence (AI).
The resolution was passed in a recent plenary session, emphasizing the need for a systematic governance approach and a strong legal framework to curb the infiltration of illegal activities into the nation’s digital landscape.
Target: Foreign Telecommunications Companies
The Chinese government is targeting foreign telecommunications companies that are reportedly exploiting new technologies to orchestrate deceptive schemes and lure locals into committing fraudulent activities. Reports indicate that entities operating outside of China have been using deceptive tactics, such as offering lucrative job opportunities to recruit unsuspecting victims.
Fraudulent players have been accused of leveraging technologies like Blockchain, Metaverse, cryptocurrency, and artificial intelligence to devise more sophisticated and stealthy criminal tools.
Call for International Collaboration
To effectively fight this transnational threat, the ruling party has advocated for strengthened international law enforcement collaboration. In addition, the Chinese government is stepping up public awareness campaigns and educational initiatives to empower people, especially the younger generation, with the knowledge and skills to identify and thwart telecom and network fraud.
Educational Initiatives and Public Awareness
In addition to law enforcement efforts, the Chinese government is stepping up public awareness campaigns and educational initiatives. These efforts aim to empower individuals, especially the younger generation, more susceptible to such schemes, with the knowledge and skills necessary to identify and thwart telecommunications and network fraud.
It is notable that although China identifies cryptocurrencies as an avenue for fraud, the country has had a difficult relationship with the sector. For example, the government has banned crypto activities, a factor that has resulted in significant sales in the market.
It is worth recalling that in May, Lesperance & Associates founder David Lesperance stated that “with the Chinese government coming down hard on the financial sector, it’s hard to imagine China loosening its grip on the ability of Chinese citizens to use crypto.”
According to Lesperance, China wants to increase its foreign currency deposits, either fiat to buy cryptocurrency or cryptocurrency itself. “They are bifurcating markets to keep out domestic Chinese customers but attract foreign customers,” he said.
The lawyer also noted that the cryptocurrency market in mainland China is “still effectively closed.”
China’s Relationship with Cryptocurrencies
Although China identifies cryptocurrencies as an avenue for fraud, the country has had a strained relationship with the sector, including banning crypto activities. However, there have been signs that the country may soften its rigid stance, such as China’s Supreme Court guidelines on cryptocurrency-related disputes, stating that if both parties agreed, settling a debt using a small number of digital assets would be considered legal.
An Important Step
China’s decision to implement aggressive measures against cryptocurrency and AI fraud is a significant step in the fight against illegal activities in the country’s digital landscape. International collaboration and public education will be key in these efforts, and the world will be watching how these initiatives play out in a country that has had a complex relationship with cryptocurrency technology.
By Audy Castaneda
