Chinese cryptocurrency regulation

chinese cryptocurrency regulation

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Library of Congress officially recognized an absolute cryptocurrency ban in be pegged to its currency.

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Why Does China Keep Banning Bitcoin?
Since , the government has issued regulations aimed at restricting the trade of cryptocurrency and any activities related to virtual currency in efforts to. All cryptocurrency transactions in China are considered illegal, including offshore exchanges to provide services to Chinese citizens. Despite this ban, it is generally not illegal to hold cryptocurrency in China. In October of , the People's Bank of China issued a draft law providing legal.
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The document mentions since Bitcoin is not issued from a monetary authority nor does it have the traditional characteristics of fiat currency, it is not to be recognized as a legal tender but instead as a virtual commodity. Ethereum mining pool operator based in China, SparkPool, also ceased services to all users from the 30th September. Making trade more inconvenient helps prevent crypto from reaching masses of unsophisticated investors. In June , trading cryptocurrency was officially banned in China, when the PBOC stated they would be blocking access to all forms of cryptocurrency exchanges, domestic and foreign, and Initial Coin Offering websites although cryptocurrency transactions continued through foreign online exchanges. This crypto-mania therefore presents numerous legal and regulatory challenges that demand prompt and efficient responses.