China Crypto Regulation
Cryptocurrency regulation in China is a controversial and evolving topic. In recent years, the Chinese government has cracked down on cryptocurrency trading, mining and ICOs (initial coin offerings). However, there have been some indications that the government may be considering a regulatory framework for cryptocurrencies. This article will cover what we know about China’s current stance towards cryptocurrency regulation as well as any potential future regulations or policies related to this issue.
Current Regulations:
As of August 2019, all domestic exchanges are banned from providing crypto-trading services within mainland China according to Order No. 5 issued by The People’s Bank of China (PBOC), which also prohibited financial institutions from offering customers with virtual currency exchange services or participation in other activities such as pricing derivatives based on tokens listed abroad . Additionally, local authorities are not allowed to provide any type of administrative support to businesses involved in digital asset transactions like banking deposit/withdrawal services , hosting events related to blockchain projects etc.. Furthermore individuals who engage in foreign platforms can still face legal consequences if they violate relevant laws & regulations including those concerning anti money laundering and terrorism financing .
Potential Future Regulatory Framework :
Despite its harsh stance against domestic trading activity , it appears that the Chinese government is taking steps towards establishing an official legal framework for cryptocurrencies operating within their borders . According to a statement released by Wang Xin – director of PBOC’s research bureau – “the development of Blockchain technology should proceed along two tracks simultaneously : one track focusing on technological innovation while another exploring institutional arrangements under existing law ” indicating that Beijing wants both technical advancement alongside proper governance structures so as maintain control over these new technologies . Moreover Zhang Shoucheng – cofounder Danhua Capital made similar claims when he mentioned at an event earlier this year how “a consensus between private sector entities and regulators could eventually lead toward legalization” suggesting further collaboration between industry players & government officials might make way for more comprehensive legislation surrounding digital assets inside Mainland jurisdictions
