Latest Translation of Chinese Cryptocurrency Regulatory Policy

Since May and June, China's main activities related to cryptocurrency market regulation have captured the market's attention everywhere, and in recent years, compliance regulation has also become a hot spot for the industry. of cryptography.

This article examines past policy changes and aims to provide a deeper interpretation of China's current environmental governance and policies to provide investors and peers with an understanding of business and engagement behaviors.

Policy Changes

Starting in 2013, Chinese regulators started announcing Circular 289, which is the basis for the next generation of Bitcoin. According to other public information, the venture capital firm began researching and improving digital benefits and digital banking company in 2014 as a sponsor of President Zhou Xiaochuan. (See "5 years of R&D for digital currency at the Central Bank of China")

Regulators from 2013 to 2014 designated Bitcoin as a "virtual device", excluding the public from risk and banks and payment companies by providing services to the Bitcoin market.Restrictions on corporate transactions for cryptocurrency services are still in place today, indicating that regulators focusing on academic risk are essential.

The ICO bubble in 2017 drove Bitcoin's market value to its all-time high and raised regulatory concerns about cryptocurrency risks.

Between 2017 and 2019, Chinese regimes focused on more regulatory policies.He said ICOs are illegal and have the right to restrict trade in China and restrict the mining industry.These management systems have developed uptime management systems generally focused on consumer protection. The most direct impact is foreign exchange, as the limits of the mining industry are close to the legal level. This policy will remain in place through the first half of 2021, allowing China to maintain its vital role in the world of energy and complete organization and measurement, attracting broad participation, including state-owned enterprises and private.

Entering 2021, the market rebounded as the value of Bitcoin and other cryptocurrencies soared to new highs, and regulators were more cautious about the potential impact of cryptocurrencies.May 2021 begins, a new hurricane law is coming, and the Treasury has made it clear."Bitcoin Mining and Trading Crackdown" is at its peak. This policy shows that the temple has a higher responsibility and a clearer position than the previous supervisory level, which outlines the essence of China's national policy, and its industry jobs should meet the feedback level. .

Chinese Policy Content Matters for Virtual Currency

Source: Edited by Babel Financial

Policy Interpretation

1) From the perspective of the governing bodies, oversight of cryptocurrencies has for many years been taken over by the Central Bank and the National Development and Reform Commission, in addition to other institutions and mergers. As the capital of crypto operations increases, the number of controllers also increases with the relationship of the industry.

According to other statistics, regarding the main regulatory requirements,The bank reported a total of six records, including records 289 and 94, both of which had the biggest impact on the industry, led by the bank in the middle.. Cryptocurrency is a highly volatile currency of the economy and financial system, and the central bank is responsible for financial security, so the central bank is the forerunner of various partnerships to implement policies.

With the rapid development of the crypto industry, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Bureau of Radio, Film and Television, the Foreign Exchange Bureau , the Ministry of Commerce and local agencies that have published the most data rights. . In 2020, 21 agencies or the government had reported 92 cases.

Source: Palestinian Authority News

2) In terms of control, central ministries and committees usually set the tone, and local autonomy and control are supported by organizations and the media.

Usually after the lead agency announces the policy, the focal point or local government of various special work areas and plans according to local circumstances.

3) according to the management objectives,Although the main objective is to prevent financial risks and protect consumers against fraud, the emphasis is on a certain time.As China announces average carbon and peak carbon targets, energy and environmental protection have changed the perception of risk and become an important starting point for sustainable development.

From 2017 to 2019, it mainly focused on tokens and illegal financial exchanges, and began to focus on the mining industry at the end of 2017, but Inner Mongolia's policy cannot eliminate large surveys from other regions. 2020-2021 Inner Mongolia, Xinjiang, Sichuan, etc. Land-based efforts to remove and suppress mines are slowly increasing. The administrators have always been strict about financial fraud related to crypto, fraud, pyramid schemes and money laundering.

The achievements of the State Finance Committee are more important than the economy, which means:The purpose of this oversight is to facilitate mining, which reflects the shift in focus from hedging financial risks to protecting the environment.Chen Weigang, director of financial institutions of the China Banking and Insurance Regulatory Commission, also said in an interview that it is difficult to restrict domestic business and chief leadership plays an important role in business.

4) From the point of view of support, from monolithic closure to hierarchical support, several methods are used at the same time, but it is always used within the legal right.

Through long-term market research, the understanding of the cryptocurrency market has gradually increased.The management devices began to show the characteristics of the various controls.There has been a gradual transition from a one-time closure to monitoring in various areas, including approval documents, interviews and customs assistance. .

As part of this monitoring, after the State Council Finance Committee decided to crack down on bitcoin mining and trading, the Sichuan Provincial Office of the National Energy Department immediately held a symposium on the mining project, Xinhua noted on June 3.Individuals have the freedom to engage with their own dangers.All of this reflects the physical control of the sense of keeping up with time and seeking truth through facts, a kind of advancement in the spirit of the law. However, there are still many inconsistencies in the law and interpretation is needed with respect to decision-making and the rule of law.

5) Determination by the results of energy and force monitoring,94 the most serious injury law, traceability policies are focused on specialized operations (such as mining, exchanges, etc.) to ensure quality monitoring.

There is still much to discuss about cryptocurrencies due to comments made by regulators before and after. For example, in March 2017, Zhou Xuedong, then director of the Central Bank's Commercial Management Company, said:Make a negative list and find the right drivers to run a Bitcoin trading platform.. In April 2021, Li Bo, Vice President of the Central Bank, introduced the Boao Forum for Asia:Bitcoin is another investment asset, and if cryptocurrency assets play a role, it could be used as an asset or another investment asset.

However, the resolution of the board of directors of the state board of directors is a key body of national law unlike functions and committees alone and illuminates the important role of Chinese immigration policy.

6) In addition to the regulations introduced by mainland China on the cryptocurrency industry, Hong Kong's regulatory attitude remains open and the terms and conditions of regulations are generally in line with mainland China, while Taiwan and Macau also carry out monitoring.

Interference and prevention

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As the policy escalates, the industry will be under constant scrutiny for a long time and many crypto operations will be severely restricted.

With the high-level guidance from the Chinese government, the economy will inevitably receive more attention and the policy will continue for a long time.The main objective is to promote the development of non-profit blockchains and to fight virtual currency fraud and abuse.

The state board's board of directors is usually the partner liaison site.In the future, organizations may be required to publish specific policies and detailed interpretation and interpretation rulings that may include distribution, export and distribution Approves blockchain operations, tax assessments, clearance procedures risk monitoring, etc., deserves the constant care of doctors.

Fraud, financial fraud and financial fraud involving virtual resources will continue to be affected, and in the future, China will cooperate with other countries or regions in the world, and many organizations around the world will be involved in the rule of law and prevention. of crimes and atrocities. Game.

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The behavior of traders will be limited to some extent and will require risk awareness and adaptation to qualified investors.

Regulators continue to issue risk warnings to the public, creating an environment for the public to understand the risks of trading and promoting awareness of safeguards.. According to incomplete statistics, relevant agencies have issued risk warnings more than 16 times, and further risk studies will help investors better understand the cryptocurrency market and blindly participate in the speculation of various Aircoins.

Compared to the traditional market, the cryptocurrency market is more volatile and can be more profitable and risky. The law recognizes the freedom of participation of ordinary people at their own risk and peril, but as a trader, there is still a need to promote and develop continuing education. Value investment concept.

Measurements:Traders should comply with the law, improve their risk and performance, stay away from Aircoin of all kinds, and engage in their businesses with caution.

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The crypto-mining industry will help speed up the shutdown process and provide a viable option for traveling miners.

The main targets of the explosion are mining companies, especially power plants in Xinjiang, Inner Mongolia and other regions. Judging from the above documents, Xinjiang, Inner Mongolia and other regions began to withdraw from 2018. This impact can be seen as a continuation of the law, and most employees also ideas and plans for change. The mining industry will suffer in the short term, but in the long term it will help the industry clean the air and promote a better mining industry.

Measures: export (Central Asia and North America, etc.), find clean energy (hydropower, etc.), and convert to lower energy (Wire, Chia, and other hard drive mining, etc.).

It should be emphasized that other attacks, including the relocation of foreign mines, are mutations and also carry a greater risk of restriction and rehabilitation. Even if you go to Unguichuan to use electricity, you will face the uncertainty and risk of local laws, so you should take care of it.

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Physicians can also be severely limited, they must monitor and care for themselves, and decide to stay away from the red line.

Participants were also subject to certain industry restrictions. In particular, the C-side exchanges, the power of cloud computing, payments and other businesses will face more scrutiny, and organizations and individuals to manipulate, the pyramid scheme, financial transactions, financial irregularities and other illegal activities through digital advantages will be corrected, prohibited and punished. .

Measurements:Some physicians need to find a commercial replacement., crime prevention traceability, chain management, forensic evidence, government information sharing and human services close to the real economy. In addition,You can also go to areas where there are rules and regulations (North America, Europe, Singapore, Hong Kong, etc.) for supervision, permit application and business joint ventures with local authorities.

Overall, the policy of the State Treasury Board is to initiate a new, more vigilant approach, which, however, may lead to frustration and negative thoughts in the short term, but create a long-term business environment and encourage industry to adhere to the industry and the environment.

The long way, the long way, the way ahead, the way will never end and the future can be unpredictable.