Anxiety Not, China Is Maybe not Banning Cryptocurrency


Rapidly ahead to nowadays, fifth February to be precise, authorities in China have only unveiled a fresh group of regulations to bar cryptocurrency. The Chinese government have Token Invest previously done therefore last year, but many have circumvented through foreign exchanges. It has enlisted the almighty 'Great Firewall of China' to block access to international transactions in a bid to stop its people from carrying out any cryptocurrency transactions.

To learn more in regards to the Chinese government stance, let's backtrack a few decades back again to 2013 when Bitcoin was increasing recognition one of the Chinese people and prices were soaring. Focused on the price volatility and speculations, the People's Bank of China and five different government ministries printed an official notice on December 2013 titled "Observe on Avoiding Economic Danger of Bitcoin" (Link is in Mandarin). Many points were outlined:

 Because of numerous factors such as restricted supply, anonymity and lack of a centralized issuer, Bitcoin is not really a formal currency but a virtual item that can not be found in the start market. All banks and economic agencies are prohibited to offer Bitcoin-related financial solutions or take part in trading task linked to Bitcoin.

 Because of the anonymity and cross-border features of Bitcoin, agencies giving Bitcoin-related services need to apply preventive methods such as for instance KYC to prevent money laundering. Any dubious activity including scam, gambling and money laundering must to be described to the authorities.

Businesses giving Bitcoin-related services must instruct the general public about Bitcoin and the technology behind it and perhaps not mislead the public with misinformation.In layman's term, Bitcoin is categorized as a virtual commodity (e.g in-game credits,) that can be bought or bought in its original variety and never to be exchanged with fiat currency. It can't be defined as money- something which acts as a moderate of trade, a unit of accounting, and a store of value.

Despite the observe being dated in 2013, it is still applicable in relation to the Asian government stance on Bitcoin and as mentioned, there is number sign of the banning Bitcoin and cryptocurrency. Fairly, regulation and education about Bitcoin and blockchain will play a role in the Asian crypto-market.