Recently, the Guizhou Duyun Public Security Bureau has taken an innovative measure in the management of virtual currencies, attracting widespread attention in the industry. They have stored the virtual currencies involved in the case in cold wallets and are keeping them in a physically isolated environment until the court makes a final ruling. To further ensure security, these cold wallets are stored in a specialized co-management center for involved assets.

Since its establishment in November 2022, the center has received and managed a large number of involved items, including 24,753 physical items, over 20 million in cash, and more than 7,000 case files, making it a real-life digital treasure trove. This practice not only addresses the difficulties faced by law enforcement when handling virtual currency cases but also ensures the integrity and security of the evidence.

This innovative approach balances law enforcement needs and asset security, providing a practical template for other regions across the country to learn from. In the long run, this practice is expected to promote the standardization and traceability of digital asset processing, clearly defining the respective responsibilities and powers of investors, businesses, and regulatory authorities.

With the promotion of centralized management models for cold wallets, the judicial disposal efficiency of the involved virtual assets is expected to significantly improve, while also reducing the risk of asset loss. This may encourage more legitimate trading platforms to establish secure and traceable custody systems.

In the long run, this innovative approach not only benefits the development of law enforcement work but may also contribute to the establishment of a unified national standard for the handling of digital assets. This will help create a more transparent and regulated compliance investment environment, promoting the mature development of the digital asset ecosystem.

Overall, through the combination of strict regulation, secure custody, and standardization trends, we are witnessing the formation of a balance point between law enforcement demands and asset security. This may mark a new starting point for China's digital asset judicial practice and indicates the direction for the future compliance development of digital assets.