Chinese authorities seek ways to restrict cryptocurrency-related activities
A person close to the Chinese government told Caijing Magazine about the possibility of upcoming measures for strengthening the cryptocurrency industry restrictions previously presented to the public.
Although the new restriction makes any commercial activity related to cryptocurrencies illegal, there was no legally approved framework to prohibit individuals or businesses from doing so; therefore, the current law cannot be applied. That is why the government is looking for judicial interpretation.
Caijing’s sources, close to the Central Bank, are currently struggling to find the right way to implement the regulatory requirements. Currently, regulators are digging into the mining and cryptocurrency industries to research the technical side of the question in order to provide the correct paths for conviction and sentencing.
While security institutions are responsible for taking action, the advice of the Central Bank is used as an instruction. The methods of executing the order are purely in the hands of the aforementioned regulators.
Currently, companies in China are legally prohibited from providing services to companies related to the cryptocurrency industry. The prohibition also applies to businesses functioning overseas. Companies that work overseas but provide services to Chinese individuals related to the cryptocurrency industry will also be held accountable under Chinese law.
Last but not least, Chinese residents also cannot act as a part of the p2p exchange on any platform. While the Central Bank’s advice mainly applies to businesses, people who, for example, provide a cryptocurrency exchange on p2p platforms like Binance will also be held responsible if they decide to work after the published notice.
