Rules and Regulations of Crypto Trading in China – Bitcoin & Crypto Guide – Altcoin Buzz

While people are slowly recognizing cryptocurrencys value, China is still hesitating.Accordingly, the country has taken some strong steps against cryptocurrencies in the past few years. Though the intent is not always wrong, the implementation remains questionable. We take a deeper look.

So whats crypto trading in China really like? Lets begin the examination by recalling the circumstances of the ICO ban.

On the 4th of September 2017, seven Chinese governmental agencies jointly issued a notice regarding the Prevention of Risks of Token Offering and Financing. These agencies include the Peoples Bank of China, the Central Cybersecurity and Information Technology Lead Group of the Communist Party of China, the Ministry of Industry and Information Technology. As well as the State Administration for Industry and Commerce, China Banking Regulatory Commission, China Security Regulatory Commission, and China Insurance Regulatory Commission.

To remind, the notice banned all ICOs in China. It ordered the organizations and individuals who had previously completed an ICO to return token assets to investors and thus protect investor rights.

On September 15, 2017, the Beijing Internet Finance Risk Working Group summoned senior executives of cryptocurrency trading platforms in Beijing. Discussions revolved around two major topics:

As a result, the platforms shut down their trading business in China. And such behemoth exchanges like Binance moved to Malta.

In February 2018, the South China Morning Post reported that China was planning to block websites related to cryptocurrency trading and ICOs, including foreign platforms. This way the countryaimed at completely removing cryptocurrency trading. However, this move was not implemented.

The country also imposed restrictions on cryptocurrency trading platforms. According to the Government rule,

Recently, the National Development Reform Commission, Chinas top economic planning body, proposed banning all cryptocurrency miners within its borders.

According to the Leading Group of Internet Financial Risks Remediation the countrys internet finance regulator which initiated the clampdown on bitcoin said:

Yet, in November it seemed like the country took a U-Turn. After all, the group itself doesnt control national energy usage but it is an influential political vehicle thats led by the deputy governor of the Peoples Bank of China (PBC), Pan Gongsheng.

Thus, the community should prepare for the worse.

Recently in the 14th Session of the 13th National Peoples Congress Standing Committee voted to pass the crypto law, which will be implemented from January 1, 2020.

The Cryptography Law aims to

According to the law, passwords will now be classified into the following categories:

Citizens, legal persons, and other organizations will use these passwords to protect networks and other related information.

A total of 5 chapters and 44 articles were published stating details related to usage requirements, security management system, and different safeguard systems and measures to strengthen the passwords which fall in these categories.

The Cryptography Law also states that it will strengthen cryptographic talents. An individual with outstanding contributions will receive rewards and appreciations.

China has not yet passed any legislation regulating cryptocurrencies. At the same time, the regulators are not recognizing them asa means of payment. Also, the Chinese banking system is not accepting any existing cryptocurrencies or providing relevant services.

That said, it is not illegal to hold Bitcoin and other cryptocurrencies, or even to buy or sell them in China. The Chinese government also encourages the development and application of blockchain technology. However, the government has made it clear that blockchain technology must serve the real economy.

Besides, the Peoples Bank of China is about to launch its own digital currency.

On a different note, it is quite surprising that in spite of Chinas tough stance, many promising crypto projects are from this country. Perhaps, in the long run, China will be able to balance regulation with innovation. While only time will tell what will happen to Bitcoin, its vital that we get the foundations right.

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Source

Xinhuanet, Dffyw,loc.gov

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Rules and Regulations of Crypto Trading in China - Bitcoin & Crypto Guide - Altcoin Buzz