According to ChainCatcher, experts Lu Jianping and Liu Jia from the Law School of Beijing Normal University stated in their research article that China's current prohibition policy not only fails to adequately address the inherent risks of virtual currencies but also exacerbates the underground and cross-border trends of virtual currency transactions, forming a unique residual risk situation.
The two experts suggest accelerating the formulation of the "Digital Property Law", defining virtual currencies as non-financial commodities, and incorporating them into the management of personal overseas investment through scenario-based multi-level supervision. Meanwhile, they recommend improving the relevant provisions of the "Anti-Money Laundering Law", including virtual asset service providers within the scope of specific non-financial institutions, strengthening supervision of DeFi transactions and peer-to-peer (P2P) transactions, and establishing a sound mechanism for asset recovery and disposal.
