Chinese Regulators Warn Against Virtual Currency Trading

Asia Blockchain Review
January 8, 2020

China has further complicated its relationship with blockchain, offsetting recent positivity toward the technology with a new regulatory warning.

Reported by Forbes, Chinese regulators including the Beijing Securities Regulatory Bureau have issued a warning concerning an increase in cryptocurrency trading in the nation.

Regulators Caution Against Risks from Trading Platforms

The joint regulatory warning was issued on December 27th, 2019 by the Beijing Securities Regulatory Bureau, Beijing Local Financial Supervision Bureau, the People’s Bank of China’s Business Management Department, and the Beijing Banking and Insurance Regulatory Bureau. It focused on how virtual currency trading has recently been on an uptick in China.

Regulators warned that trading platforms for cryptocurrencies and digital money are creating potential threats for investors. 

It specifically pointed to “zero-interest loans, dual currency financial management and other projects through digital currency mortgages” and clearly states that the regulators “seriously warn institutions and personnel in Beijing that carry out related activities”.

Warning Complicates Earlier Endorsement from Chinese President

The call for caution further complicates China’s already complex approach toward blockchain technology and virtual currencies. In October of last year, Chinese President Xi Jinping released a statement urging firms in the country to “seize the opportunity” of blockchain.

It was noted by the Forbes article, however, that the statement and recent warning could be reconciled considering the country is poised to introduce its own Central Bank Digital Currency. 

The virtual money would allow China to embrace blockchain technology while necessitating that it block out competition to enhance its control of the realm.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Malaysia’s Economic Battle Is Just Getting Started
    ASIA BLOCKCHAIN REVIEW decided to catch up with George Koshy, for his perspective on Malaysia's Gove...

    June 5, 2020

    UnionBank’s i2i Platform Continues To Expand
    The i2i of Union Bank of the Philippines’ fintech arm UBX, posted more transactions in the first qua...

    June 3, 2020

    SAP Malaysia’s MD Lays Out His Vision
    It's always a great privilege to talk to C-level executives, Asia Blockchain Review recently caught ...

    June 3, 2020

    Oracle Malaysia’s MD On Blockchain’s Potential
    We sat down with Fitri Abdullah, Managing Director of Oracle Malaysia, for his thoughts on Blockchai...

    June 2, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us