China's Supreme People's Procuratorate (SPP) is ramping up efforts to combat cybercrime by targeting criminals who use blockchain and metaverse projects for illegal activities. The SPP is alarmed by the recent surge in online fraud, cyber violence, and personal information infringement. Notably, the SPP has observed a significant rise in cybercrimes committed on blockchains and within the metaverse, with criminals increasingly relying on cryptocurrencies for money laundering, making it challenging to trace their illicit wealth.

Ge Xiaoyan, the Deputy Prosecutor-General of the SPP, highlights a 64% year-on-year increase in charges related to cybercrime-related telecom fraud, while charges linked to internet theft have risen nearly 23%, and those related to online counterfeiting and sales of inferior goods have surged by almost 86%. Procuratorates have pressed charges against 280,000 individuals involved in cybercrime cases between January and November, reflecting a 36% year-on-year increase and constituting 19% of all criminal offenses.

The People's Bank of China (PBoC) acknowledges the importance of regulating cryptocurrency and decentralized finance in its latest financial stability report. The PBoC emphasizes the necessity of international cooperation in regulating the industry.

Despite the ban on most crypto transactions and cryptocurrency mining, mainland China remains a significant hub for crypto-mining activities.