Discussion on Price Evaluation Issues in the Judicial Disposal of Virtual Money

1. Introduction

With the rapid development of blockchain technology and Virtual Money, its application is becoming increasingly widespread globally. However, the anonymity, liquidity, and decentralized characteristics of Virtual Money have also made it a tool for some illegal activities. In recent years, the number of criminal cases involving Virtual Money that are solved, prosecuted, and tried in our country has been increasing annually, which has raised concerns about the judicial handling of Virtual Money, especially regarding its price assessment.

This article will discuss the necessity of price evaluation in the judicial disposal of Virtual Money, analyzing its current situation and challenges.

2. Concept of Price Assessment

Price assessment refers to the process in criminal cases where judicial authorities entrust professional third-party institutions to determine the value, identify the attributes, or conduct technical analysis of the property involved in the case. The purpose is to provide an objective and scientific basis for the investigation, prosecution, and trial of the case, ensuring that the disposal of the property involved is legal and fair.

The core role of judicial assessment lies in ensuring the fairness of judicial procedures and the reliability of evidence. Through assessments by professional institutions, judicial authorities can obtain authoritative evaluation reports, reducing the arbitrariness of subjective judgment. In addition, judicial assessment provides a quantitative basis for the disposal of property involved in cases, helping to achieve transparency and standardization in property disposal. However, in the emerging field of judicial disposal of Virtual Money, the applicability of judicial assessment faces new challenges.

3. The Necessity of Judicial Disposal and Price Assessment of Virtual Money

(1) The Current Status of Judicial Disposal of Virtual Money

In our country, the judicial disposal of virtual money involved in the case is usually led by the public security organs, and the disposal methods include sealing, seizing, and liquidating. However, due to the uniqueness of virtual money, the disposal process faces multiple challenges. Firstly, virtual money is stored on the blockchain network, and sealing and seizing require technical support; secondly, the price of virtual money is highly volatile, and the timing of disposal directly affects the outcome; finally, the lack of unified disposal standards leads to significant differences in practices across regions.

In judicial practice, most criminal cases involving coins will involve price assessment of the virtual money in question to determine its value. For example, judicial authorities may commission third-party organizations to reference market conditions to appraise the virtual money involved in the case. However, this practice is controversial in practice: on one hand, price assessment can provide a basis for determining value for disposal; on the other hand, the assessment process may be questioned due to market fluctuations, the qualifications of the assessment agency, and other issues.

(2) Analysis of the Necessity of Price Evaluation

Theoretically, the price assessment of virtual money holds certain significance in judicial disposal. Firstly, the assessment can clarify the value of the virtual money involved in the case, providing a basis for recovering losses; secondly, the assessment results can serve as a reference for the execution of property penalties, ensuring that the sentencing matches the criminal proceeds and protects the legal rights of the parties involved; finally, judicial assessment helps to enhance the transparency of disposal, avoiding judicial injustice caused by arbitrary disposal.

However, under the current regulatory framework in our country, the necessity of virtual money price assessment is debatable. On September 15, 2021, a notice jointly issued by multiple departments clearly stated that virtual money does not have the same legal status as fiat currency, and related trading activities are considered illegal financial activities. It is prohibited for any domestic institution to provide pricing services for virtual money transactions. Therefore, providing pricing services for virtual money may be seen as indirectly supporting virtual money transactions, which poses a risk of crossing regulatory red lines.

In addition, the price assessment of virtual money faces operational challenges in practice. Firstly, the market price of virtual money fluctuates wildly, and the evaluation results may become invalid in a short period of time; secondly, the qualifications of the evaluation institutions and the scientific nature of the evaluation methods are difficult to unify, leading to a lack of credibility in the evaluation results; finally, in criminal defense cases involving coins, the price assessment report may be difficult for the defense to accept, and may even lead to complaints and reports against the evaluation institution.

In summary, the price assessment of Virtual Money can be implemented in judicial disposal, but it is not necessary.

4. Conclusion

The judicial disposal of virtual money, although a niche topic, has garnered widespread attention from both the theoretical and practical circles. However, under the current regulatory policies, the price assessment in the judicial disposal of involved virtual money still faces numerous challenges. The unique attributes of virtual money determine that it cannot fully apply the disposal model of property involved in traditional criminal cases.

In the future, promoting the standardization of the judicial disposal of Virtual Money requires multi-faceted efforts: improving relevant laws, regulations, and regulatory policies, clarifying disposal procedures and standards; strengthening technical support to enhance the disposal capabilities of judicial authorities; exploring disposal models aligned with international practices and learning from the experiences of other countries. Before regulatory policies loosen, the price assessment of Virtual Money, while theoretically valuable, should be implemented cautiously in practice to avoid crossing regulatory red lines. Only through the joint advancement of policies, technology, and practice can the judicial disposal of Virtual Money gradually mature.