China Expected to Reveal Virtual Currency Legislation on October 1st?!
Aren’t you sick of waiting for the Chinese to make up their mind and put laws into place so normal cryptocurrency activity can take place in China again? I know I am, and I was so glad when I saw this news story this morning. China is allegedly putting laws into place that will help regulate Bitcoin and other virtual currencies. The article found on Jinse.com (a Chinese media outlet) suggests that cryptocurrencies will be treated as “virtual property” under Chinese law.
Earlier this year, on March 15, the General Principles of the Civil Law of the People’s Republic of China was voted by the Fifth Session of the 12th National People’s Congress and announced that it will come into effect on October 1, 2017. For us, the most significant change is the new virtual property protection of a civil law object . This means that from October 1st, Bitcoin, Ether, and other virtual currencies will be formally incorporated into the scope of their legal protection!
What Does This Mean For “Closing” Exchanges?
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.
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.”
Jinse asserts that the crackdown on exchanges was motivated by “small platform[s]… not seriously implement[ing] anti-money laundering and KYC policy” requirements. The publication also mentiones 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.
We’ll have more information as it becomes available for you.