China to toughen regulations on virtual currency trading, speculation

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A representation of the Bitcoin virtual currency can be seen in this illustration taken on November 19, 2020. [Photo/Agencies]

Chinese authorities have decided to prevent and manage the risks associated with trading and speculating in virtual currency, according to a notice released Friday by the People’s Bank of China.

“All business activities related to virtual currency are illegal and should be strictly prohibited and punished in accordance with the law,” said the notice jointly issued by the central bank and nine other government departments.

It is also considered illegal financial activity for virtual currency exchanges abroad to provide services to domestic residents via the Internet, according to the notice.

China’s policies on virtual currencies are consistent, the PBOC said in a question-and-answer statement, reiterating that virtual currencies do not have the same legal status as fiat currencies and cannot be put into circulation on the market.

A series of measures will be deployed to strengthen the regulation of virtual currency. According to the opinion, financial institutions and non-bank payment institutions are prohibited from offering services for business activities related to virtual currency.

China will improve content management and Internet access, registration of market entities and advertising related to virtual currencies, according to the notice.

Efforts will also be made to impose a severe crackdown on illegal financial activities and criminal activities related to virtual currency.

In recent years, the rampant expansion of virtual currencies such as Bitcoin has disrupted the economic and financial order, triggering criminal activities such as money laundering and seriously endangering the security of people’s property, the bank said. central.

China has taken a hard line on virtual currencies. Also on Friday, the National Development and Reform Commission, the country’s leading economic planner, issued an advisory to step up its crackdown on virtual currency mining.

China to toughen crackdown on virtual currency mining

BEIJING – China will step up crackdown on virtual currency mining as part of the country’s efforts to save energy and reduce carbon emissions, a notice posted on the official website of the National Development Commission said on Friday. and reform.

The mining of virtual currency is energy intensive, produces high carbon emissions and contributes little to the economy, according to the opinion.

The country will step up regulations on the entire virtual currency mining process and strictly ban new mining projects, according to the advice.


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