China Justice Observer

中司观察

EnglishArabicChinese (Simplified)DutchFrenchGermanHindiItalianJapaneseKoreanPortugueseRussianSpanishSwedishHebrewIndonesianVietnameseThaiTurkishMalay

China Toughen Rules for Virtual Currency Supervision

Thu, 08 Jul 2021
Categories: China Legal Trends

On 18 May 2021, the National Internet Finance Association of China, China Banking Association, and the Payment and Clearing Association of China jointly released the “Announcement on Preventing Speculative Risks in Virtual Currency Trading(the “Announcement”, 关于防范虚拟货币交易炒作风险的公告). Pursuant to the Announcement, the virtual currency is not a legal tender, but a specific virtual commodity, which is not issued by monetary authorities, not recognized by law as a means to settle any debt, has no mandatory acceptance or other attributes of currency, and thus shall not and can not be used as a legal tender in the market.

In accordance with the Announcement, members such as financial institutions and payment institutions shall practice with enhanced social responsibilities, and are prohibited from using any virtual currency for product or service pricing, underwriting any virtual currency-related insurance policy, or include any virtual currency in any insurance policy coverage, or directly or indirectly providing customers with any other service related to virtual currencies.

Subsequently, on May 21, the Financial Stability and Development Committee of the State Council in a conference explicitly proposed to crackdown on Bitcoin mining and trading activities. This was the first time that the State Council put forward clear requirements for cracking down on bitcoin mining and trading activities.

 

 

Cover Photo by Kevin Gu (https://unsplash.com/@kevinkoo) on Unsplash

Contributors: CJO Staff Contributors Team

Save as PDF

You might also like

SPC Publishes Typical Cases on Public Security Crimes

In April 2024, China's Supreme People's Court (SPC) released five typical cases illustrating crimes against public security, emphasizing clarifications on trial criteria and sentencing principles, featuring a case involving serious injuries from objects thrown off a high-rise building.

Beijing Court Upholds Workers' Right to Offline Rest

The Beijing No. 3 Intermediate People's Court ruled that workers are entitled to overtime pay for “invisible overtime work” conducted via social media outside of working hours, protecting their right to “offline rest”.

China Revises State Secrets Protection Law

China’s national legislature, the National People’s Congress, revised the State Secrets Protection Law to enhance information classification, secrecy in technological innovation, and precise protection of state secrets, effective May 1, 2024.