However, since the end of last year, some domestic people have turned to overseas website platforms to participate in the ICO and virtual currency transactions, and relevant behaviors have shown signs of resurgence. Under such circumstances, it is learned that the recent regulation of virtual currency continues to increase. The Financial Times reporter has learned exclusively that some regulatory measures will be taken against ICO and virtual currency inside and outside the country, including banning the existence of relevant businesses, banning and disposing of domestic and foreign virtual currency exchange websites.
Pre-clean-up work has achieved more significant results
On September 4, 2017, seven ministries and commissions such as the People's Bank of China released the "Notice on Preventing Financing Risks of Token Issuance" (the "Announcement") and stopped the ICO activities urgently. At the same time, measures should be taken to require the virtual currency exchange to completely shut down all its trading activities in China by September 30, 2017.
The "Notice" requires that any so-called token financing transaction platform shall not engage in the exchange of legal tender and tokens and "virtual currencies", shall not trade or act as a counter-party to buy or sell tokens or "virtual currency" and shall not be Token or "virtual currency" to provide pricing, information intermediary and other services. For the existence of illegal and illegal issues of tokens financing trading platform, the financial management department will be brought to the telecommunications department in accordance with the law to close its platform and mobile APP, drew letters and mobile applications in the App Store to make mobile shelves, and drew the business administration according to law Revocation of its business license.
It is reported that after the search around the virtual currency exchange and ICO platform has basically achieved a risk-free exit, clear effect of clean-up and effective control of potential financial and social risks. After the clean-up and remediation, the trading volume of virtual currency denominated in RMB dropped from over 90% of global trading volume to less than 1% at one time, greatly reducing the risk level.
Some virtual currency trading platform website signs of resurgence
However, ICO, virtual currency trading did not completely withdraw from China. It is learned that after the closure of the domestic virtual currency exchange, many domestic people turned to overseas platform websites to continue participating in the virtual currency transaction. Some trading platforms even match point-to-point transactions between individual users through the so-called "OTC" approach. At present, Japan, Hong Kong, etc. are the more common trading platform to move out.
Overseas transactions, regulatory evasion, virtual currency trading and ICO activities have resurgence trend. Take some overseas ICOs with domestic participation as an example. The various risks and problems identified in the "Notice" still exist, including illegal issuance, unrealistic items, fraud and even pyramid selling, and it may be even more difficult for investors to recover the losses.
In light of this, it is learned that taking into consideration the risks faced by domestic investors in turning offshore platforms into participating in transactions, in order to implement the spirit of the "Notice," and to prevent and mitigate financial risks, it will take a number of regulatory measures, including banning related commercial ventures, banning and disposing of domestic Outside virtual currency trading platform website. In this case, investors need to recognize the risks associated with offshore ICO and virtual currency trading platform, firmly establish risk awareness and not participate in relevant illegal activities.
Will continue to strengthen the clean-up and rectification of the virtual currency trading platform
Since the beginning of this year, China has not diminished its efforts in monitoring and controlling the virtual currency. In response to the issue of the virtual currency for many times, China has played a full-scale consolidation and rectification action in "combo boxing." It is learned that the recent Central Bank Department of Business Management issued a "Notice on carrying out self-inspection and rectification work for the provision of payment services for illegal virtual currency transactions", requiring the jurisdiction of the various legal person payment agencies in the unit and its branches to carry out self-examination and rectification work is strictly prohibited for the virtual currency Transactions provide services and take effective measures to prevent payment channels for virtual currency transactions.
Last year's national financial work conference stressed that finance should serve the real economy. Of course, financial innovation also needs to comply with this requirement. In order to implement the spirit of the National Conference on Financial Work, it was learned that prior to that, it had issued a document requiring all localities to rectify norms and rectify bitcoin mines to guide the relevant enterprises in an orderly exit.
In addition, on January 26, China Internet Finance Association issued a risk alert also noticed some investors turned offshore activities, and remind investors that "the same overseas platform there is system security, market manipulation and money laundering and other risks."
Risk warnings said that with the governments of various countries in the world paying more attention to the regulation of the virtual currency, some overseas trading platforms may be forcibly banned by the host government. Some overseas trading platforms have been restricted to visit because of obvious compliance risks. Against this backdrop, domestic investors will face some risks in moving offshore platforms to participate in the transaction. In the meantime, the Association monitored and found that some institutions or individuals in China are still organizing so-called currency transactions and over-the-counter transactions, accompanied by such services as market makers and guarantors. This essence still belongs to the virtual currency exchange place, Obviously inconsistent with the existing policy and regulations. Risk warning to remind investors that the above actions are facing policy risks, investors should take the initiative to strengthen the risk awareness, remain rational, away from all types of illegal financial activities.
It is learned that the next step will continue to be closely watched on the behavior of virtual currency. A series of regulatory measures including banning related commercial presences and banning and disposing of websites of domestic and foreign virtual currency exchange trading platforms will be taken to prevent financial risks and safeguard financial stability. In the future, as soon as one of them is found, one will be forced to close one. At the same time, the future will not preclude the possibility of introducing further regulatory measures.