China Warns Against Misuse of New Technologies

China’s Stance on Emerging Technologies

China has issued a warning to overseas telecom companies about the potential misuse of new technologies, including digital assets, blockchain, artificial intelligence (AI), and the metaverse. The Chinese Central Political and Legal Committee has highlighted concerns over fraudulent activities using these technologies for deceptive tactics, such as posing fake job opportunities to lure victims.

Increasing Fraudulent Activities

Fraud groups are reportedly utilizing blockchain, virtual currency, and AI to enhance their criminal tools, making them more concealed and confusing. This has prompted a call for cooperation among public security, finance, telecommunications, and Internet departments. The aim is to implement advanced technical measures and enforce strict supervision to curb these illicit activities.

Legal Measures and Public Awareness

China is committed to cracking down on such fraudulent practices by enhancing public awareness and strengthening judicial measures. The Intermediate People’s Court of Xuzhou is actively addressing telecom network fraud cases, with recent sentencing of 85 defendants in connection with 52 cases.

Cryptocurrency and Regulatory Shifts

This development aligns with a notable shift in China's approach to cryptocurrencies. Despite a historical ban on cryptocurrency mining and trading since 2017, recent moves, such as allowing retail investors in Hong Kong to purchase bitcoin, suggest a potential warming towards the crypto market. Previously, China was a leader in cryptocurrency adoption before tightening regulations, including blocking major crypto websites.

China’s current focus remains on preventing technology misuse while cautiously exploring the digital asset landscape. This dual approach reflects a balancing act between maintaining control and adapting to global technological advancements.