China, has had a see-saw relationship with cryptocurrencies and blockchain in the past one and a half year. While it has gone back and forth on its decision to use blockchain and allow cryptocurrency trading, it seems it has made up its mind on the latter.
A notice released by the Beijing Internet Finance Industry Association (BIFIA), says that there are activities carried out by companies that do not use blockchain but are more oriented towards speculating on the concept of blockchain.
It reads, ” The value of trading speculation has been lucrative. Using the names of “research” and “forum” to promote “ICO” and “IEO” , “STO”, “stable currency”, “integral currency”, “digital currency”, etc., in order to carry out training, project promotion, financing transactions and other forms of online and offline activities. Such activities are not really based on blockchain technology, but take the opportunity to speculate on the concept of blockchain, which seriously disrupts the normal financial and economic order and brings social risks.”
In November, People’s Bank of China (PBoC) had issued China Financial Stability Report involving in crypto assets, as reported by Crypto-News India.
According to this report, progress have been made in cleanup and rectification in the field of crypto assets, effectively preventing and defusing related risks. However, there still are illegal trades such as overseas operation, and scams are made by proxy investment or other ways as a result of various types of illegal financial activities with rapid transfer.
The notice by the BIFIA reminded potential users, “In August 2018, the China Insurance Regulatory Commission, the Central Network Information Office, the Ministry of Public Security, the People’s Bank of China, and the General Administration of Market Supervision issued the “Risk Tips on Preventing Illegal Fund Raising in the Name of “Virtual Currency” and “Blockchain”; Subsequently, China Internet Finance The Association and the Beijing Municipal Bureau of Local Financial Supervision also issued relevant risk warnings in a timely manner.”
It added, keeping this in mind, all relevant financial institutions and individuals in Beijing, needed to make sure that their financial activities were above board and legal.
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