China announces aggressive measures to tackle crypto and AI fraud

The Communist Party of China has made a resolute announcement, vowing to tackle the increasing wave of fraudulent activities carried out through emerging forms of technology such as cryptocurrency technology and artificial intelligence (AI).

The government is targeting overseas telecommunication companies that reportedly exploit new technologies to orchestrate deceitful schemes to lure locals into committing fraudulent activities, local publication Global Times reported on August 5. 

The resolution was passed during a recent plenary session; the Chinese Central Political and Legal Committee emphasized the crucial need for a systematic governance approach and a robust legal framework to curb the infiltration of illegal activities in the nation’s digital landscape.

Under the named fraudulent schemes, reports indicate that entities operating from outside China have been using deceptive tactics such as posing as lucrative job opportunities to recruit unsuspecting victims.

In this line, the fraudulent players have been accused of leveraging technologies such as blockchain, metaverse, cryptocurrency, and artificial intelligence to devise more sophisticated and concealed criminal tools.

Call for international collaboration

Notably, to combat this transnational threat effectively, the ruling party has advocated for a fortified international collaboration in law enforcement to mount concerted offensives.

In addition to law enforcement efforts, the Chinese government is stepping up public awareness campaigns and educational initiatives. These endeavors aim to empower individuals, especially the younger generation, who are more susceptible to such schemes, with the knowledge and skills needed to identify and thwart telecommunications and network fraud.

It is worth noting that as China identifies cryptocurrencies as an avenue for fraud, the country has had a frosty relationship with the sector. For instance, the government has banned crypto activities, a factor that has in the past resulted in significant market sell-offs. 

However, in the recent past, there have been indications that the country might ease on its tough crypto stand. For instance, as reported by Finbold, China’s Supreme Court released guidelines regarding cryptocurrency-related disputes, stating that settling a debt using a small amount of digital assets would be considered legal if both parties agreed.