Virtual Currency Regulation in East Asia China Article

China occupies a global position in terms of blockchain technology, market and patent inventions. A group of companies starting with blockchain technology has emerged. However, in the area of ​​virtual benefits, China has received measurable solutions.

According to the “Token Payment Protection Notice” issued by the Company in 2017, no organization or individual can be infringed on the token deposit. . Organizations and individuals who have completed advertising and fundraising need to take action such as opt-out and takedown, protect the rights and interests of investors, and manage risks to become appropriate. At the same time, the token financial trading platform must not trade the fiat currency and digital currency market, can not trade digital currency as an intermediary partner and unable to provide price, brokerage information and other services for digital benefits.

(1) Financial institutions and payment companies will not trade in virtual currencies.

In December 2013, the People's Bank of China and five other institutions jointly published the “Notice on the Protection of Bitcoin Risks” (Yinfa [2013] No. 289). Financial institutions and payment companies should not be involved in the Bitcoin market, such as using Bitcoin based on the value of a product or service, buying or selling Bitcoin, trading Bitcoin as a middle member or work on Bitcoin insurance. That is, Bitcoin selling coins are paid for by insurance guarantees and provide consumers with other Bitcoin services directly or indirectly. In addition, under the “Token Issuance Funding Risk Protection Notice,” all financial institutions and non-payment companies should not engage in financial reporting activities, including including the provision of business products such as account opening, registration, marketing, delisting and troubleshooting. or services.

(2) Any cryptocurrency transaction is a financial offense.

September 24, 2021, joined by 10 departments and commissions, "Notice of protection and treatment of excess virtual currency" Yinfa [2021] N °. 237 (hereinafter referred to as "Notice No. 237") was explicitly mentioned. Marketing involving virtual resources is illegal financial activity. Providing brokerage information and billing services for fiat and virtual currency exchanges, virtual currency exchanges and virtual currency trading as a central counterparty for virtual currency trading, token trading, trading virtual currency derivatives and other virtual profits related to the illegal sale of tokens and banknotes, does not allow the public to ensure security, future business illegal trade, financial transactions and other suspected activities of Financial misconduct is strictly prohibited by law and is prohibited. Examine the liability required by law for carrying out illegal financial activities necessary to break the law.

(3) It is also an illegal financial practice for foreign exchange cryptocurrency to provide services to people living in China on the Internet.

This Law 237 states that foreign exchange transactions providing services to Chinese people on the Internet are also considered financial crimes. From a legal point of view, Opinion 237 has coastal impacts and states that the practices are mainly domestic workers at risk of coercion. -for-profit organizations and individuals who also provide services such as marketing, printing, payment and contracting, and sponsorship services. However, according to the full text of this notice. 237, this type of foreign law enforcement and regulatory law generally prohibits the exchange of virtual currency by requesting, promoting and providing services to people in China.

According to the "Bitcoin Risk Protection Notice", Bitcoin transactions and records are included in the protection of financial protection. First of all, websites that provide services like Bitcoin registration and trading must honestly fulfill their obligations to protect financial security, identify customers, use, register your real name and record information such as the resident's name and registration number. Second, all financial institutions, payment companies, and online sites that provide services such as Bitcoin registration and trading will monitor and assess China's financial protection. space. Invest in the financial protection sector in cooperation with China's financial institutions. In a 237 report, it was further stated that financial institutions and defaulting companies are not required to immediately notify authorities if they discover a crime.

China does not prevent individuals from owning virtual assets, and does not prevent the law, non-governmental organizations and individuals in China from investing in virtual assets and The results are relevant, but requires that organizations and legitimate and non-partisan individuals invest. Citizens' laws dealing with virtual and related assets will not be proven if they violate public and cultural norms, and if the investments are believed to affect the financial system or threaten financial security, they will be investigated and will be sanctioned.