TechFlow, June 19 — The People's Court Daily published an article by the Intermediate People's Court of Shenzhen, Guangdong Province, stating that virtual currencies possess certain property attributes, a view that has largely reached consensus in judicial practice.
For virtual currencies requiring restitution to victims or subject to confiscation, and to balance the need for handling such assets with mainland regulatory policies, it may be explored to entrust qualified third-party institutions—under record-filing and supervision by authorities such as the People's Bank of China and the State Administration of Foreign Exchange—to convert virtual currencies into fiat currency at market prices via compliant, licensed trading platforms in overseas jurisdictions where virtual currency trading is legal, such as Hong Kong.
Virtual currencies used for criminal activities that endanger national security or public interests, such as privacy coins, may be sent to a "black hole address" for destruction, thereby permanently removing them from circulation.
