TechFlow news, on June 5, according to the official WeChat account of Capital Public Security Legal System, the Legal Team of Beijing Municipal Public Security Bureau and Beijing Property Rights Exchange (hereinafter referred to as "BPE") jointly established a cooperation mechanism for handling seized virtual currencies, signing the "Framework Agreement on Cooperation in Handling Seized Virtual Currencies," thereby including seized virtual currencies into the category of "physical surrender."
The article notes that in response to the increasing incidence of virtual currency-related crimes in recent years, and in view of the practical challenges and cross-border risks associated with disposing seized virtual currencies within China, the Legal Team of the Municipal Public Security Bureau and BPE have further expanded their cooperation. After thorough research and assessment regarding policy regulations and operational procedures for such special types of seized assets, they have explored a new overseas disposal channel.
This process involves: public security organs entrusting seized virtual currencies in physical form to BPE for disposal; upon acceptance of the commission, BPE selects professional service institutions to conduct testing, receiving, and transfer operations on the seized virtual currencies, then publicly sells them via Hong Kong-licensed compliant exchanges. After completing the state foreign exchange management approval procedures, the proceeds are converted into RMB and transferred into the designated account for case-related funds of public security organs, and subsequently surrendered to the national treasury. This model has already been successfully applied in disposing seized virtual currencies from a case handled by Shunyi Public Security Branch.
