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 has become increasingly widespread globally. However, the anonymity, liquidity, and decentralized nature of Virtual Money have also made it a tool for certain illegal activities. The number of criminal cases involving Virtual Money that are investigated, prosecuted, and tried in our country is increasing each year, and the issue of handling and liquidating Virtual Money in criminal cases is gradually becoming prominent.

In judicial practice, whether a price assessment is required for the disposal of the virtual money involved in the case has become a focal point of controversy. On one hand, a price assessment helps to clarify the value of the virtual money involved in the case, facilitating subsequent disposal; on the other hand, the price assessment of virtual money may lead to disputes due to severe market fluctuations and a lack of unified standards, and it may even touch upon regulatory red lines. This article will explore 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 criminal cases where judicial authorities entrust a professional third-party organization 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. In criminal cases, judicial assessment typically involves the estimation of property value and technical identification of physical evidence.

The core role of judicial evaluation 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 judgments. In addition, judicial evaluation provides a quantitative basis for the disposal of relevant assets, helping to achieve transparency and standardization in asset disposal. However, in the emerging field of judicial disposal of Virtual Money, the applicability of judicial evaluation 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 cases is usually led by public security agencies, and the disposal methods include 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 dramatically, and the timing of disposal directly affects the effectiveness of the disposal; finally, the lack of unified disposal standards leads to significant differences in practices across regions.

In judicial practice, the value of virtual money involved in most criminal cases related to coins is assessed to determine its worth. For example, judicial authorities commission third-party institutions to estimate the value of the involved Bitcoin, Ethereum, Tether, etc., based on market conditions. However, this practice is controversial in practice: on one hand, price assessment can provide a basis for disposal; on the other hand, the assessment process may raise doubts due to market fluctuations and the qualifications of the assessment institutions.

(2) Analysis of the Necessity of Price Assessment

The theoretical price assessment of virtual money has 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 protecting the legitimate rights and interests of the parties involved; finally, judicial assessment helps to improve the transparency of disposal, avoiding judicial injustice caused by arbitrary disposal.

However, under the current regulatory framework, the necessity of pricing assessments 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. It prohibits any domestic institution from providing pricing services for Virtual Money trading. Therefore, providing pricing services for Virtual Money may be seen as indirectly supporting Virtual Money trading, posing a risk of crossing regulatory boundaries.

In addition, the price assessment of virtual money faces operational difficulties in practice. First, the market price of virtual money fluctuates dramatically, and the assessment results may become invalid in a short period; second, it is difficult to unify the qualifications of assessment agencies and the scientific nature of assessment methods, leading to a lack of credibility in the assessment results; finally, in criminal defenses involving coins, price assessment reports are often difficult to be accepted by the defense like traditional judicial assessment reports, and may even trigger complaints and reports against the appraisal agency from the defense.

Based on the above analysis, 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 fields. In recent years, academic forums and seminars on the disposal of virtual money have been continuously held, where scholars have engaged in in-depth discussions on disposal processes, regulatory policies, and technical support. However, as long as the current regulatory policies are not modified or adjusted, the price assessment in the judicial disposal of virtual money involved in the case will always be difficult to escape the dilemma of 'scratching an itch over the shoe'. The special attributes of virtual money determine that it cannot fully apply the model of disposal of property involved in traditional criminal cases.

In the future, to promote the complete standardization of the judicial disposal of Virtual Money, efforts need to be made in the following areas: first, improve relevant laws, regulations, and regulatory policies, clarifying the procedures and standards for the judicial disposal of Virtual Money; second, strengthen technical support to enhance the ability of judicial authorities to seize and dispose of Virtual Money; third, explore disposal models that align with international practices and draw on experiences from other countries. Before the regulatory policies are relaxed, although the price assessment of Virtual Money has theoretical value, it should be implemented with caution in practice to avoid crossing regulatory red lines. Only with the joint advancement of policies, technology, and practice can the judicial disposal of Virtual Money gradually mature.