TechFlow, April 5 — In a research article published today, Beijing Normal University Law School experts Lu Jianping and Liu Jia stated that China's current ban policy has not only failed to adequately address the inherent risks of virtual currencies but has also intensified their shift underground and across borders, creating a unique residual risk situation.
The two experts recommended accelerating the formulation of a Digital Property Law, defining virtual currencies as non-financial commodities and bringing them under personal overseas investment management through scenario-based, multi-layered regulation. They also suggested improving relevant provisions of the Anti-Money Laundering Law by including virtual asset service providers within the scope of designated non-financial institutions, strengthening supervision over decentralized finance (DeFi) and peer-to-peer (P2P) transactions, and establishing sound mechanisms for recovering and handling illicit proceeds.
