[2017-09-30] Virtual Currencies Expected to be Regulated in China on October 1st

[cybersofts]

Virtual Currencies Expected to Regulated in China on October 1st

Chinese media outlet Jinse.com has reported that laws governing the use of virtual currencies in China will be enacted on October 1st 2017. Jinse 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.

Virtual Currencies Are Expected to Be Legislated As “Virtual Property” From October 1

Jinse has reported 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. The Jinse report suggests that cryptocurrencies will be treated as “virtual property” under Chinese law. Chinese academic, Professor Deng Jianpeng, stated that “bitcoin, [crypto]currency, etc. can be classified as virtual assets.”

The incorporation of virtual currencies into China’s “General Principles of the Civil Law” legislation 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. Jinse reinforces this inference, stating 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”- according to a Google translation.

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 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.


Source: https://news.bitcoin.com/virtual-currencies-expected-to-regulated-in-china-on-october-1st/

[Snaic]

The fact that the Chinese government intends to settle the circulation of the crypto currency already today, October 1, is a very good sign for the crypto currency. If such regulation does not bring us unpleasant surprises, then the crypto currency will react to it by a rapid and long rise in price. So, after a sharp fall in the rate and a month-long stagnation associated with the information about China's plumbing to ban the Crypto currency, bitcoins and other crypto-currencies are emerging as winners. Perhaps not the least role in this decision was played by the fact that the Chinese government analyzed the situation and was convinced that the ban on crypto currency would not bring the expected effect.