The Shanghai High People's Court has released new guidelines to regulate the judicial handling of virtual assets, particularly cryptocurrencies, as of February 9, 2026. The guidelines mandate that seized virtual currencies be transferred to a designated cold wallet, implementing mechanisms such as "separation of duties," "multi-person, multi-lock," and "mutual supervision" to enhance security and oversight. These measures aim to address previous challenges in the judicial disposal of virtual currencies, focusing on private key confidentiality and technical security. Currently, China lacks a unified approach to handling virtual currencies involved in legal cases, with regions still exploring solutions. Under the existing regulatory framework, activities related to virtual currencies are considered illegal financial activities, posing legal and compliance challenges for domestic auctions and sales.