China Supreme Court Sets New Rules on Virtual Currency Cases

The China Supreme People’s Court has introduced a new framework for handling virtual currency-related cases. This signals a deeper effort to regulate digital assets and strengthen cybersecurity. The announcement came during the Eighth National Criminal Trial Work Conference, where officials outlined new measures to tackle cybercrime, data violations, and cross-border online gambling. The Court emphasized that these changes are part of a broader initiative to ensure fairness, legal consistency, and security across China’s fast-evolving digital economy.

Virtual currency cases are among the key highlights of this new directive. The Court focused on how the judicial system should manage and dispose of virtual currencies involved in criminal cases. Officials stressed the need for the judicial system to adapt to challenges posed by cryptocurrencies. The Court noted that crimes like fraud, money laundering, and illegal fundraising are increasingly linked to these digital assets. To address this, the Supreme Court called for clearer judicial rules regarding how digital assets like Bitcoin and other tokens are treated.

It was emphasized that seizing, valuing, and liquidating virtual currencies that are part of criminal proceedings is essential. Furthermore, ensuring the authentication of electronic evidence is a priority, allowing blockchain transactions and digital records to be reliably used in court. These moves represent a step toward a structured legal approach to digital assets—not as an endorsement of cryptocurrency trading, but as a way to standardize law enforcement and courtroom procedures amid the growing number of crypto-related cases.

The Supreme Court also directed its focus toward the issue of cross-border online gambling, describing it as a major threat to social order and cybersecurity. The new directive calls for a strict crackdown on gambling networks that operate across borders or use online platforms to attract Chinese users. Importantly, platform operators will face criminal liability if they knowingly provide services or promote activities related to overseas gambling. The Court encouraged collaboration between regulators, law enforcement, and tech companies to dismantle the infrastructure supporting gambling. This aligns with China’s broader policy of holding digital platforms accountable for illegal activities.

Addressing concerns about data privacy and the misuse of personal information, the Supreme Court called for intensified efforts to combat activities within the “black and gray markets”, including the sale and unauthorized use of private data. Those found guilty of such crimes could face harsher penalties, such as employment bans from related sectors. Furthermore, online companies were urged to enhance regulatory compliance, adopt stronger data protection standards, and improve monitoring systems to prevent insider data leaks.

China’s latest moves reflect its determination to bring order to the digital economy, while maintaining its strict stance on cryptocurrency and online misconduct. By clarifying the treatment of virtual assets and tightening regulations for digital platforms, the Supreme Court seeks to balance innovation with accountability. These updated judicial rules mark an important step toward modernizing the legal system for the digital era, ensuring that cyberspace remains secure, regulated, and governed by the rule of law.