September 30, 2017 / Law

China Is Going To Regulate Cryptocurrencies

Chinese media reported that regulators will issue laws to regulate virtual currencies on October 1, 2017. Jinse states that the cryptocurrency rules has included in the “General Principles of the Civil Law of the People’s Republic of China”, – the legislation, which adopted on March 15, 2017. 

It is expected that virtual currencies will receive the status of “virtual property”

Jinse reports that General Principles of the Civil Law of the People’s Republic of China will include cryptocurrency rules. The Jinse publication states that cryptocurrencies will be treated as “virtual property” in accordance with Chinese law. 

The inclusion of virtual currencies in China’s legislation, namely, “General provisions of civil law” indicates that the recent suppression by China of virtual currency exchanges will not imply a nationwide ban on the use and possession of crypto-currencies. Jinse argues this conclusion, stating that “regulators never mentioned the problem of prohibition of bitcoin from start to finish, that is, the government level does not believe that there is a problem with the bitcoin itself.”

Jinse argues that the repression on the exchanges was caused by the fact that the platform is not serious about the requirements for combating money laundering and KYC. The publication also mentions that the recent measures related to the closure of cryptocurrency exchanges are temporary and should not be interpreted as a general ban on crypto-currencies.

Earlier this month China bans all ICO and the issuance of an order to close all cryptocurrency exchanges operating in China. All  trading platforms had to stop their activities before October 1. However, reported that Okcoin and Huobi would have the right to continue operation until the end of October.

The decision of the Chinese government to stop the activity of all cryptocurrency exchanges, with the exception of Okcoin and Huobi, is suggesting that these exchanges may become the only bitcoin exchanges allowed in China.


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