This article aims to examine the blockchain regulatory framework in China in the past to identify the purpose of regulatory processes and explore the implications of the regulatory industry.

instructions

From May to June 2021, China announced restrictions on blockchain mining and industry. Additionally, Musk also spoke negatively about the potential of Bitcoin mining, sparking a wave of lower-level reforms across the blockchain industry.

Since 2013, China has always adhered to the principle of dividing the market into three sectors: technology production, cryptocurrency and crypto-assets, and continued to monitor cryptocurrencies and crypto-assets.

Statement of law

Historically, China's previous rule of law led to four events: trading, deposits and withdrawals, mining and publishing, and 13-14, 17-19 and 20-21 is the period maximum when our policy is declared. The law has its own purpose.

1. In case of cryptocurrency exchange and deposit/withdrawal

As of June 23, 2021, the regulatory policy data affecting the cryptocurrency market released by China is recorded in Table 1.

Table 1 Regulatory policy applies to cryptocurrency transactions

Source: PayPal Money, compiled by CryptoYC

Regarding the cycle of the right to publish, except for the two cases of 2013 and 2014, in which the central bank participated directly, the others were released as information rights, such as ICO restrictions and mining restrictions.In parallel, this paper examines the constraints on data exchanges and finds that surveillance is getting stronger over time, while having a better understanding of cryptographic tools.

In terms of developing the characteristics of the crypto asset industry itself, trading is a key driver for the rapid growth of the industry. Restricting a company's success is important if you want to restrict certain activities of a company, such as mining or ICOs.

2. For cryptocurrency mining and production

As of June 16, 2021, information on regulatory requirements for cryptocurrency mining and production in China is listed in Table 2.

Table 2 Regulatory Policy on Cryptocurrency Mining and Production

Source: PayPal Money, compiled by CryptoYC

Cryptocurrency "mining" is an important basis of virtual currency. Its purpose is to use hardware tools to identify and record the operations of cryptographically encrypted digital devices by counting. There is a lot of energy used during this time.

Thus, around 2020, the limits of "trade" in China are completely different.The main measures to limit "mining" before 2021 are to reduce reputation markets and prevent excessive public participation in cryptocurrency speculation. After 2021, consider carbon options and energy management.

3. Advertising on cryptocurrencies

As of June 16, 2021, information on the regulatory framework related to cryptocurrency (ICO) in China is listed in Table 3.

Table 3 Regulatory Policy on Cryptocurrency Mining and Issuance

Source: PayPal Money, compiled by CryptoYC

In 2017, ICOs were more supported by Bitcoin in the second half of the year, which pushed the price of Bitcoin to an all-time high, increasing management's interest in the risk of crypto assets.

To control the risk, Chinese regulators issued several ICO regulations from 2017 to 2019.ICOs broke new ground by declaring them illegal and restricting trading platforms operating in China.

4. Policy for Hong Kong and Macao

As of June 16, 2021, information on regulatory issues related to cryptocurrencies released in Hong Kong and Macau are recorded as shown in Table 4.

Table 4 Cryptocurrency regulatory policy in Hong Kong and Macau

Information has: BEIIBO says financial, Cryptoyyc.

compared to mainland ChinaLeaders in Hong Kong and Macau are small and focus on business registration and access to investors., controlling business risks and protecting investors.

Analytics Policy

Legal interpretation not only identifies the implications of the rule of law, but also identifies the reasons and rationale for policy making in order to gain an understanding of the rule of law and seek resistance.

Therefore, in this article, when discussing regulatory rules, we first identify the purpose of the rules, then the form and implications of the law, and finally discuss the positive impact of the law on the future development of cryptocurrencies.

1. The purpose of care

After comparing historical Bitcoin price data, the data shows that at all times, one of the purposes of monitoring is to restrict trading, deposits, etc., minimizing and cooling public interest in participate in the cryptocurrency industry. industry..

The key point of this decision in this whitepaper is that the timing of the speculation in Chinese politics has to do with when the value of Bitcoin began to fall from its all-time highs. .

Table 5 Impact of Bitcoin Price Policy (Unit: USD)

Data Source: CoinMarketCap, GlassNode, Contrast CryptoYC

From a management perspective, the different watch periods are of significant significance: Industry Blast in 2013, ICO Blast in 2017, and Mining Repair in 2021. When the policy was announced, the change was generally at a high level but remained high for some time.

Changing views, the data in Table 5 also shows that:On the second day after the announcement of the impact of the policy, the market will have a lot of price decline volume, which also proves that some risk reduction can be achieved in the event of interference with the enactment of the aforementioned law. the price.

In 2013, the Financial Corporation and other companies jointly released a call for data on 289."Bitcoin Risk Protection Notice",These phrases have become an important basis for China to manage the cryptocurrency industry in the future.. from 2014With the support of President Zhou Xiaochuan, the People's Bank of China has begun to research and develop digital and digital banking products.

Thus, the authors argue that the purpose of governance is to pass.Regulation of business services, restrictions on deposits and withdrawals, reduction of mining operations, restrictions on ICOs, etc.Many measures will cool the market and reduce the needs of the public, thus achieving the goal of financial security at home.

2. List of management and importance of the law

Judgment of agencies that have been monitoring since 2013,Basically, the central bank and the China Internet Finance Association are the pillars, and the National Development and Reform Commission and local governments have supported them.. 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. .

From the perspective of governance, the rules in China are generally set by the central bank and the central bank and the executive branch, while local government and urban projects are designed and implemented in detail. At the same time, news outlets such as Xinhua News Agency and People's Daily, as well as leading industry organizations such as the Internet Finance Association, lacked support.

The importance of goal managementPrevention of financial risks and protection of consumers against fraud, but the average severity varies from time to 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 the right view,Currently, cryptocurrency regulation is not the rule, To earnPublish in reports, comments, announcements and other information flagged by the ministry and committees. Under the principle that there is no law for the supervision of relevant industries, the supervision of the cryptocurrency market by the data of the Ministry and the Council is also being tested in China now.

In the spirit of the recent State Treasury Committee meeting, the recent 5.21 monitoring of cryptocurrency mining is now the highest level of Chinese policy that governs Bitcoin, indicating that the cryptocurrency is receiving more attention from the top.

6.22 Central financial institutions will question banks and banks for violations of OTC deposits and withdrawals in the cryptocurrency market. This foreshadowsChinese regulators have a deep understanding of cryptocurrency investments, and oversight has continued to deepen, moving from a blanket approach to detailed and in-depth oversight.

Non-compliance with the rules

1. Cryptocurrencies are referred to as "virtual devices", which are legitimate assets of human beings.

reigned 2013–2014;It liberates Bitcoin as a "virtual device", allowing people to take their own risk, while preventing banks and payment institutions from 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.

Despite policy changes,It is still legal for individuals to hold cryptocurrencies.. Numerous lawsuits have also been filed to prove that cryptocurrencies are owned by legitimate individuals and are protected by Chinese law.

2. US Dollar Cryptocurrency Pricing Power.

Policy from 2017 to 2019This makes ICOs illegal, restricts trading on the trading platform in China, and imposes mining restrictions.. Under these regulations, exchanges in China have direct access to overseas markets and domestic investors are required to trade stablecoins such as USDT through the OTC market to invest in cryptocurrencies, rising capital and problems.

Chinese traders lost momentum in the value of cryptocurrencies due to the lack of direct investment and because the value of cryptocurrency fluctuated in USDT (dollar stablecoin) on currencies.

3. Lose Your Voice in Bitcoin Mining

Prior to 2021, regulators used to include the "mining industry" in the capital reduction, but not in the final version of the industrial process.Leaders reported additional insights into the mining industry, particularly in major mining industries such as Inner Mongolia, Xinjiang, Yunnan and Sichuan.It can be seen that the current monitoring of the mining industry is largely in line with the rule and has yet to be fulfilled.

Figure 1 Mid-term project performance from September 2019 to April 2020

Source: University of Cambridge

Judging by the Bitcoin mining power data tally in Figure 1, China once accounted for more than 70% of the global energy tally.However, since Regulation 5.21, most mining systems in China have been nearly shut down, using either electricity or hydropower.

According to CNBC, on the evening of June 21, the Guangzhou logistics company shipped around £6,600 worth of Bitcoin miners to Maryland, USA. At the same time, there are reports about the transfer of mining technology to Kazakhstan and Middle Eastern countries.It is true that the Bitcoin mining industry will again lose its voice after China loses its cryptocurrency power due to a huge Chinese power market.

An Introduction to Capital Governing Assumptions and Action Projections on China's Future Cryptocurrency Policy

By examining the past regulation of Chinese cryptocurrencies, this article shows that Chinese regulation has ethical and regulatory principles.Although China's current administration has declined after the economic boom, there are positive aspects.This chapter predicts the future governance of China in two aspects: governance and governance.

1. Control procedures

From 2013 to the present, China's governance culture has held a similar theme.By targeting hotspots that are now responsible for rising cryptocurrency prices and increased regulation of infrastructure such as trading and mining, it curbs the cryptocurrency value asset bubble and reduces the Chinese speculative demand for cryptocurrencies. .

In violation of the requirements, the Chinese authorities have made it clear that cryptocurrencies are copyrighted and legal tender cryptocurrencies are protected by national law like any other treasure.

Thus, over the past four years, Bitcoin will continue to be a legitimate asset protected by national law as a "virtual asset". To reduce overall financial market risk and prevent speculation, the state will continue to focus on cryptocurrency mining, advertising and trading.

2. Ability to control measurements

From a regulatory oversight perspective, Bitcoin's current administration complies with existing civil law and regulatory frameworks, with central institutions such as the State Board of Directors, the governing body, and the central bank providing key information, as well as city and police functions. and the application of special policies and procedures will not change significantly.

As the digital yuan deepens and the Chinese government deepens its understanding of the cryptocurrency market, it is possible that Chinese regulators will oversee Bitcoin through regulatory regulation or future securities and use it as a means of opening up businesses is not excluded. the. Cryptocurrency exchange base.

Going forward, the possibility of China establishing a foreign exchange market or following the lead of the United States to start trading cryptocurrency derivatives on existing exchanges and using it to entice domestic investors to engage in cryptocurrency investments excluding transactions. Anti-money laundering and other disadvantages of cryptocurrencies.

concludes

1. Cryptocurrency Industry Welcome Rules

Due to its illegal nature, the cryptocurrency industry has become a tool for criminal activities such as money laundering and fraud, and some darknet and terrorist groups are also involved.Use virtual resources as renovation tools by real time. Popular in the development and expansion of virtual currency.

Therefore, for the future development of the cryptocurrency market,The direction of the rules of the sovereign country is fast. Due to the status of virtual currencies, the oversight of a sovereign state cannot eliminate all illegal uses of virtual currencies.Virtual currency was quickly regulated by major countries around the world.

From the perspective of the cryptocurrency itself, there are unlimited benefits like Bitcoin, app support platform like Ethereum, financial services like MakerDAO and Yearn Finance, and tools like Artwork NFT.Due to the good added value of the investment, it is easy to create a bubble without forgetting.For emerging markets, asset bubbles can have a significant impact on the industry.

In other words, from an industry health perspective, the virtual currency market is a welcome one to watch.

2. Self-regulation is neutral for the company

Under the current policy, regulation is at the heart of the business itself. The current policy has two main objectives.One is the use of virtual resources to engage in crime, ideology and other activities that could affect national financial security, and the other is to engage in code strategies such as carbon neutrality and improvements in blockchain technology.

Management can also be market neutral through price control. Given the distribution of virtual currencies such as Bitcoin, you need to know about 51% or more of the counting power to monitor the network and identify each market, the profit minus the cost of care.

Visually, the current sovereign state could not control the economy. Due to the anonymity of the cryptocurrency market,If the merchant does not go through the KYC process or is connected to a real financial number, management cannot identify the merchant.This restriction inevitably places management at the center of the market itself.