Guizhou Police Implement Cold Wallet Storage for Seized Cryptocurrencies

In Duoyun City, Guizhou, seized virtual assets are stored in cold wallets at a centralized facility to enhance security and management after China’s 2021 trading ban.

Summary

Following China’s 2021 virtual currency trading ban, Duoyun City police in Guizhou Province implemented a centralized system for handling seized cryptocurrencies by freezing them, transferring to cold wallets, and securely storing them until court rulings. Launched in November 2022, the center has processed 24,753 seized items, over 20.49 million yuan in funds, and more than 7,000 case files, addressing key preservation, transfer, and disposal challenges.

Terms & Concepts
  • Cold Wallet: An offline cryptocurrency storage method that enhances security by keeping private keys away from internet access.
  • Virtual Currency Ban (China 2021): A nationwide prohibition on virtual currency trading and related services implemented by the Chinese government in 2021.