Regulations on Virtual Currencies in China will be Issued on October 1, 2017.
Jinse, a Chinese media outlet has reported that laws governing the use of virtual currencies in China will be enacted on October 1st 2017. It states that Chinese cryptocurrency regulations were incorporated into the nation’s “General Principles of the Civil Law of the People’s Republic of China” legislation, which was voted on and passed on March 15th.
The Jinse report states that the General Principles of the Civil Law of the People’s Republic of China, which is expected to come into effect on October 1st, will see Chinese cryptocurrency regulations implemented for the first time. It also suggests that cryptocurrencies will be treated as “virtual property” under Chinese law. Chinese academic, Professor Deng Jianpeng, stated that “bitcoin, cryptocurrency, etc. can be classified as virtual assets.”
Jinse reinforces an inference about the incorporation of virtual currencies into China’s “General Principles of the Civil Law” legislation which suggests that China’s recent crackdown on virtual currency exchanges will not be expanded into a nationwide prohibition on the use and possession of cryptocurrencies. in regard of this Jinse stated that “regulators have never mentioned the issue of prohibiting bitcoin from beginning to end, that is to say, the government level does not think that there is a problem with the bitcoin itself.” It also asserts that the crackdown on exchanges was motivated by “small platforms… not seriously implementing anti-money laundering and KYC policy” requirements.
The publication also cites the decision to allow China’s major cryptocurrency exchanges to reopen following PBOC investigations, implying that the recent crackdown on cryptocurrency exchanges is temporary, and should not be interpreted as a general prohibition on cryptocurrency.
It was also recently reported the Chinese government announcement to extend its ban on ICOs and mandate the closure of all cryptocurrency exchanges operating in China. All exchanges were required to shut down their operations by October 1st. However, reports emerged stating that Okcoin and Huobi would be permitted to continue to operate until the end of October. This week, leading bitcoin exchange BTCC stopped accepting deposits in Yuan and cryptocurrencies. Although the exchange will stop all trading operations by September 31 2017, BTCC has stated that it will continue to process withdrawals until October 31 2017.
The Chinese government’s decision to cease the operations of all cryptocurrency exchanges except for Okcoin and Huobi right before the nation’s virtual currency regulations are set to come into effect, has led to speculation that the surviving exchanges may be the only cryptocurrency exchanges permitted to operate in China moving forward. New announcements are expected.
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