Chinese law enforcement laid out its cryptocurrency forensic methods as Beijing tightens its ongoing crackdown on digital assets, South China Morning Post reported on Wednesday.
Chinese Police Detail Crypto Tracing, Seizure Methods: SCMP
2 July 2026 - 09:03 CEST
By Oihyun Kim
Researchers at the Wenzhou Public Security Bureau and Zhejiang Provincial Public Security Department's Criminal Investigation Corps documented how mainland investigators trace, seize and freeze crypto held by suspects. The methodology covers evidence collection from seized devices, onchain tracing across blockchains and mixers (services that obscure transaction trails), plus formal requests for know your customer (KYC) records from major exchanges, SCMP reported.
Cryptocurrency transactions have been banned in China since a 2021 government notice, with rules earlier this year extending the crackdown to stablecoins and asset tokenization. According to SCMP, seizure methods include transferring assets by moving private keys into police-controlled multisignature wallets, as well as internal red lines requiring "separation of case handling and custody."
