China’s Supreme People’s Procuratorate (SPP) is targeting cybercriminals leveraging blockchain technology and metaverse projects to combat the surge in online fraud, cyber violence, and personal data infringement.

There's been a notable increase in cybercrimes utilizing blockchains and metaverses, with criminals turning to cryptocurrencies for money laundering, making tracking their illegal gains challenging. Additionally, telecom fraud charges related to cybercrimes have surged by 64 percent year-on-year.

While blockchain-related crimes are rising, traditional offenses like gambling, theft, pyramid schemes, and counterfeiting have also expanded into cyberspace. Charges linked to internet theft have spiked by nearly 23%, while those related to online counterfeiting and sales of inferior goods have surged by almost 86%.

China has seen a 36% increase in procuratorate-filed charges against individuals involved in cybercrimes, constituting 19% of criminal offenses. Zhang Xiaojin, director of the Fourth Procuratorate of the Supreme People’s Procuratorate, has cautioned against investment scams in the local crypto economy, highlighting the emergence of new cybercrimes using gimmicks like the Metaverse, blockchain, and binary options platforms.

While China is cracking down on metaverse-related crimes, Hong Kong has adopted crypto-friendly regulations to standardize its digital asset ecosystem and protect investors without stifling innovation.

Blockchain technology offers promise in enhancing cybersecurity by ensuring data integrity and authentication through cryptographic security. This makes it challenging for malicious actors to tamper with sensitive information, bolstering trust in sectors like finance, healthcare, and supply chain management.

As governments, businesses, and cybersecurity experts collaborate on blockchain-based cybersecurity solutions, they aim to create a more secure digital ecosystem, safeguarding sensitive data and countering emerging threats.