China’s Duyun City Pilots Crypto Asset Handling Protocol
- Duyun’s Public Security Bureau oversees crypto asset management.
- Pioneering asset isolation protocol tested in China.
- No global leader commentary detected.
Duyun City, Guizhou, is piloting a virtual currency handling method by freezing assets and moving them to cold wallets for secure storage amidst growing regulatory scrutiny.
The approach highlights China’s stringent asset management amidst these regulations, though its market impact remains unobserved due to isolated handling.
The city of Duyun, China, has initiated a protocol for handling seized virtual currencies by freezing assets and transferring them to cold wallets. This process ensures physical isolation and awaits judicial decisions.
The Duyun Public Security Bureau and the Duyun City Property Management Center are the main entities involved. Their protocol includes freezing digital assets and transferring them to cold storage for safekeeping.
This protocol has no visible impact on global crypto markets as assets are isolated. It improves the security of seized funds while awaiting court decisions, aligning with China’s post-2021 regulatory stance.
Financially, Duyun’s center manages over 20.4955 million yuan in seized funds across criminal cases, enhancing regulatory compliance. This method employs cold wallets for assets pending court rulings.
Duyun’s methodology represents an adaptation of practices seen in the EU and US, focusing on asset protection. Historically, assets like BTC and ETH are most affected by such protocols.
This initiative may shape future financial and regulatory frameworks in China. Duyun City Tests Crypto Asset Handling for Enhanced Security, leveraging international methods, the process enhances asset management. Expansion beyond local levels could impact crypto workflows.
Duyun police froze the virtual currencies involved and seized them in cold wallets established by the police for physical isolation. The funds are then stored at the Duyun City Property Management Center, awaiting a court ruling.
