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

1. Introduction

With the rapid development of blockchain technology and Virtual Money, its application scope continues to expand. However, the anonymity, liquidity, and decentralized characteristics of Virtual Money also make it a tool for certain illegal activities. In recent years, the number of criminal cases involving Virtual Money in our country has been continuously increasing, along with the issue of how to handle these involved Virtual Money.

In judicial practice, whether a price assessment is needed for the disposal of virtual money involved in the case has become a focal point of controversy. On one hand, price assessment helps determine the value of the virtual money involved, facilitating subsequent handling; on the other hand, due to drastic market fluctuations and the lack of unified standards, the price assessment of virtual money may cause disputes and even touch upon regulatory red lines. This article will discuss the necessity of price assessment in the judicial disposal of virtual money, analyzing its current situation and challenges.

2. Definition and Role of Price Assessment

Price assessment usually refers to the process in which judicial authorities entrust professional third-party organizations to evaluate 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. In criminal cases, judicial assessment typically involves the estimation of the value of the property and the technical identification of physical evidence.

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

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

(1) The current situation of judicial disposal of Virtual Money

In our country, the judicial disposal of the virtual money involved in the case is usually led by public security agencies, including sealing, confiscation, and liquidation. However, due to the uniqueness of virtual money, the disposal process faces multiple challenges. First, virtual money is stored on the blockchain network, and sealing and confiscation require technical support; second, the price of virtual money fluctuates drastically, 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 conduct price assessments of the virtual money involved to determine its value. For example, judicial authorities may entrust third-party institutions to evaluate the involved Bitcoin, Ethereum, and other coins based on market conditions. However, this practice is controversial in the field: on one hand, price assessments can provide a basis for determining value in disposal; on the other hand, the assessment process may be questioned due to issues such as market fluctuations and the qualifications of the assessment institutions.

(2) Analysis of the Necessity of Price Assessment

Theoretically, the price assessment of virtual money has certain significance in judicial disposal. First, the assessment can clarify the value of the virtual money involved in the case, providing a basis for recovering losses. Second, the assessment results can serve as a reference for the execution of property penalties, ensuring that the sentencing matches the criminal proceeds and safeguarding the legitimate rights and interests 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 price assessment for virtual money 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, prohibiting any domestic institution from providing pricing services for virtual money transactions. Therefore, providing pricing services for virtual money may be seen as indirectly supporting virtual money transactions, posing a risk of crossing regulatory boundaries.

In addition, the price assessment of Virtual Money faces operational challenges in practice. First, the market prices of Virtual Money are highly volatile, and the assessment results may become invalid in a short period; second, it is difficult to standardize the qualifications of assessment agencies and the scientific methods of assessment, leading to a lack of credibility in the assessment results; finally, in criminal defense involving coins, even if the price assessment is accepted by the defendant, this assessment report is hard for the defense to accept like traditional judicial assessment reports, and it may even provoke complaints or reports against the appraisal agency by the defense.

Through the above analysis, it can be considered that the price assessment of Virtual Money can be implemented in judicial disposal, but it is not necessary.

Four, Conclusion

The judicial disposal of virtual money, although a very niche practical issue, is currently receiving widespread attention from both the theoretical and practical communities. In recent years, academic forums and seminars on the disposal of virtual money have been continuously held, where scholars engage in in-depth discussions surrounding the disposal processes, regulatory policies, and technical support. However, as long as the regulatory policies represented by the aforementioned notice are not modified or adjusted, the price assessment in the judicial disposal business involving the relevant virtual money will always struggle to escape the dilemma of being "a mere scratching of the surface." The special attributes of virtual money determine that it cannot be fully applied to the disposal models of assets involved in traditional criminal cases.

In the future, to promote the complete standardization of the judicial disposal of Virtual Money, efforts must be made in the following areas: First, improve relevant laws and regulations and regulatory policies, clarifying the procedures and standards for the judicial disposal of Virtual Money; Second, strengthen technical support to enhance the capacity of judicial authorities to seize and dispose of Virtual Money; Third, explore disposal models that align with international standards, drawing on the experiences of other countries. Until regulatory policies are relaxed, the price assessment of Virtual Money, although 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.