In a recent development, an individual in China was fined 1.06 million yuan ($144,907) for using a virtual private network (VPN) to access restricted websites. This incident has raised concerns among China’s IT and Web3 circles, as VPNs are often relied upon for remote-work tasks. This article will explore the details of the case and its implications for internet freedom in China.
According to local media reports, an unnamed individual in China accessed restricted websites, such as GitHub, using a VPN as part of their remote work routine for a foreign employer. This included tasks like viewing source code, customer support, and teleconferencing. However, Chinese law prohibits the use of VPNs to bypass the country’s “Great Firewall,” which blocks popular sites like Google, Wikipedia, and Facebook. The city of Chengde Police issued a penalty of $144,097, equivalent to three years of the individual’s salary, deeming the income earned with the aid of a VPN as “proceeds of crime.”
The ruling against the VPN user has sparked concerns among China’s IT and Web3 communities. VPNs are often used by individuals and businesses to bypass censorship and access blocked websites. The use of VPNs has become essential for many remote workers who rely on foreign technology platforms and apps that are otherwise inaccessible within China. The large-scale adoption of VPNs raises questions about the effectiveness of China’s Great Firewall and the government’s control over the internet.
In an effort to boost the adoption of the central bank digital currency (CBDC), the city of Hangzhou is airdropping 10 million digital yuan, worth a total of $1.37 million, to incentivize food and beverage spending during the 19th Asian Games. This initiative allows anyone within the municipality of Hangzhou, locals and visitors alike, to receive digital yuan vouchers for use in food delivery platforms. By reimbursing merchants in digital yuan for a percentage of the value of food items, the city aims to promote the use of the CBDC. This follows a previous airdrop of 4 million digital yuan earlier this year to encourage adoption.
Hong Kong police have detained 15 individuals linked to the collapse of the cryptocurrency exchange JPEX. The Ponzi scheme, which resulted in a total loss of 1.5 billion Hong Kong dollars ($191.6 million), is shaping up as one of the worst in Hong Kong’s history. The Hong Kong Securities & Futures Commission had previously issued a warning about JPEX being an unlicensed exchange, leading to the arrests of key executives and the abandonment of its booth in a crypto conference.
Despite falling victim to a $70 million wallet hack orchestrated by North Korea’s Lazarus Group, Hong Kong crypto exchange CoinEx has resumed services. The exchange claims to have updated its wallet system and deposit addresses, rendering the old addresses invalid. While the theft resulted in significant financial losses, CoinEx’s cold wallets were not affected. The exchange has offered a bounty for the return of the stolen funds and plans to gradually resume deposit and withdrawal services for all cryptocurrencies.
Chinese tech conglomerate Alibaba, through its Cloud subsidiary, has announced plans to launch its own wallet service in collaboration with crypto custodian Cobo. The partnership aims to create an enterprise wallet-as-a-service solution for developers and organizations, integrating crypto wallets into software. Cobo’s custodial wallet and multi-party computation technology will contribute to building the Alibaba Cloud wallet. This partnership is expected to set new standards in security, performance, and accessibility of digital wallet infrastructure for Web3.
The case of the fined VPN user in China highlights the ongoing battle between internet freedom and government control in the country. The use of VPNs to bypass censorship has become crucial for many individuals and businesses, raising questions about the effectiveness of China’s Great Firewall. Additionally, the collapse of the JPEX exchange and the wallet hack that affected CoinEx demonstrate the risks associated with the cryptocurrency industry. On the other hand, Alibaba’s plan to launch its own wallet service reflects the growing interest in digital assets and the development of innovative solutions. As developments in East Asia’s tech and cryptocurrency industry continue to unfold, it remains important to critically analyze the implications and potential risks involved.
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