28 Jun 2018
In the latest news, China Banking Regulatory Commission suggests crypto licensing framework. The authority has outlined its proposition in the paper called “The Study of Development and Regulations on Distributed Ledger Accounts, Blockchain, and Digital Currency.”
28 June, AtoZ Markets – China Banking Regulatory Commission (CBRC) has published a working paper that has suggested the issuance of the licenses for cryptocurrency related businesses by the local regulators.
The paper has been entitled “The Study of Development and Regulations on Distributed Ledger Accounts, Blockchain, and Digital Currency.” The paper is authorized by the researchers from CBRC, Li Wenhong, and Jiang Zeshen. The officials have published this paper this Wednesday.
The paper is focused on the regulatory studies on cryptocurrency. It talks about a number of legal efforts made by different nations globally to govern businesses related to the cryptocurrency derivative trading. Moreover, it mentions ICOs.
The official paper reads:
"Currently, any capital transaction that relates to distributed ledger accounts, the blockchain, cryptocurrency and its derivatives, ICOs and exchange operations should all be regarded as financial services. Therefore they must be put under relevant financial regulatory frameworks so that they can operate legally with a license."
Even though the document mentions that comments made by researchers do not necessarily reflect the stance of the regulator, the proposition still is regarded as very notable. This is given the fact that it is the first time that Chinese regulators have supported a cryptocurrency licensing scheme.
Moreover, the document stated that a possible regulatory framework for crypto-related activities should not be limited to ICOs and trading. In fact, the researchers propose to apply it to any service that deals with transactions “related to distributed ledger accounts.”
AtoZ Markets has reported earlier this March that the governor of the People’s Bank of China, Zhou Xiaochuan, has stated that the digital currency might replace physical in the country. The PBoC is presently working on the development of the digital currency. The initiative is called the Digital Currency (for) Electronic Payment, or DCEP.
Mr. Zhou has made remarks during the press conference on the 9th of March. Some days before the conference, another speaker at the Two Sessions has spoken about the Blockchain technology.
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