Category Archives: China cryptocurrency news

Auto Added by WPeMatico

Chinese Financial Watchdog Declares STOs Illegal

Chinese Financial Watchdog Declares STOs Illegal

Security Token Offerings (STOs) have been declared illegal by the chief of Beijing Municipal Bureau of Finance, Huo Xuewen. He stated this at a wealth management forum sponsored by the bureau.

I will issue a risk warning to those who promote and issue STO tokens in Beijing. My advice is to only engage in such offerings when the government has legalized them,” Huo said.

ICOs have been declared by the Chinese government but until now, it has been silent on STOs. With this statement, even these are illegal – at least within the jurisdiction of the Chinese capital.

STOs are very much like ICOs, but with a small difference. Unlike ICOs, tokens issued through STOs offer investors a stake in the profits of the platform, much like traditional financial securities do.

Crypto token issuers have been trying to circumnavigate the blocks that the Chinese government is placing. When ICOs were banned, platforms and issuers simply moved their operations overseas but continued to sell their tokens in the Chinese market. To this, vice president of People’s Bank of China, Pan Gonsheng, had issued a statement: “Any new financial product or phenomenon that is not authorized under the existing legal framework, we will crush them as soon as they dare to surface.”

Crypto issuers have also been using tactics such as airdrops and convincing local investors to fund platforms outside of the mainland. These have also been declared illegal by Chinese authorities.

Even the remote connection with token offerings are swiftly and strictly struck down. In August, Guangzhou Development District even sent a notice to a local business that intended to host a cryptocurrency event, telling them to stop all events and promotions.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: pexels.com

The post Chinese Financial Watchdog Declares STOs Illegal appeared first on BitcoinNews.com.

Chinese Reserve Bank Targets Airdrops in Latest Crypto Crackdown

The People’s Bank of China (PBoC) is taking another step to remove the footprint of cryptocurrencies in the country and is now clamping down on coin airdrops, which are free token giveaways commonly conducted by new projects.

According to the official financial stability report of 2018, the PBoC said that airdrops could be disguised initial coin offerings (ICOs) that continue to grow in number. The bank is reportedly frustrated because it has used its authority to ban ICOs but airdrop campaigns have not ceased.

The report shows clear frustration from PBoC regarding the token market because some crypto-related firms are moving overseas from China and using investor agents to secure funding from the country. According to the bank, some companies are also using airdrops to give away free tokens, before manipulating the market to increase the prices.

There were overall 65 ICOs that took place in China until 18 July 2017 and most of them took place in the same year. The September 2017 ban did stop ICOs mushrooming in the country but they are finding ways to sustain themselves. The PBoC remains adamant about controlling ICOs and their funding, and the official financial stability report suggests that it is coordinating with other national agencies for this purpose.

The China National Internet Finance Association (NIFA), a self-regulatory organization, came into the limelight back in August when it added a “token sale” section on its website so that the public can report illegal ICOs raising funds in the country.

In recent months, the government has softened its stance towards cryptocurrencies. A recent court decision allowed Chinese merchants to accept payment in Bitcoin. But ICOs and even airdrops are expected to face much of the wrath of the authorities in the immediate future.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pexels.com

The post Chinese Reserve Bank Targets Airdrops in Latest Crypto Crackdown appeared first on BitcoinNews.com.

HK Exchange Partners with Blockchain Firm to Accelerate Post-Trade Process

The Hong Kong Exchanges and Clearing Limited (HKEX) has announced that it is partnering with a blockchain firm to improve its post-trade processes, according to financial news agency Finextra.

The exchange has been working with Digital Asset for some time and the system is now being tested in the Shanghai and Shenzhen stock exchanges. The overall collaboration is now being called Stock Connect.

The new project not only allows improvement of post-trade times but also allows international and Chinese traders and investors to trade in each others’ exchanges. It also improves the overall efficiency of trades.

While the Pilot program for Stock Connect has been successfully tested, the partnership now aims to develop and deploy a full-service platform that aims to resolve the issues of differing time zones, settlement and operational issues that occur for traders who wish to invest in the Chinese markets. Currently, these issues are being faced because of the tight settlement cycle in place in Chinese markets that is hampering growth.

HKEX is positioning itself at the forefront of blockchain and cryptocurrency development and regulation in the Chinese region and is aiming to regulate them. Earlier, it published a report regarding regulation of these new classes of assets according to existing regulatory frameworks. It insisted that blockchain and cryptocurrencies should be treated as securities so that the exchange could regulate them on its own terms.

HKEX is also looking to acquire more blockchain companies in order to use their technology for Chinese exchange markets. It is also in partnership with other companies involved in DLT.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pexels.com

The post HK Exchange Partners with Blockchain Firm to Accelerate Post-Trade Process appeared first on BitcoinNews.com.

China Opening up to Crypto

Despite China’s image as a no-go area for cryptocurrencies, a series of pro-crypto moves are opening up the forbidden kingdom to cryptocurrencies. Recently, a local court has now allowed merchants to accept Bitcoin as a payment method and recognized the cryptocurrency as a property thus allowing individuals to own and transact with it.

The move is surprising for many in the cryptocurrency industry and may open doors to a crypto future in the biggest manufacturing hub in the world. Gradually, China is working to legalize cryptocurrencies and open up their country just like it did back in the 90s that brought unprecedented growth to the region.

According to local Chinese reports, the Shenzhen Court of International Arbitration announced this landmark decision. However, it also passed the buck to the regulatory authorities as according to the ruling, Bitcoin ownership and transfer shouldn’t be in conflict with existing financial regulations.

According to the verdict: “CN law does not forbid owning & transferring bitcoin, which should be protected by law because of its property nature and economic value.”

As a consequence of this decision, circulation and ownership of Bitcoin are now legal and merchants can accept cryptocurrencies as payment without being in violation of the local law. While the law falls short of giving the same rights to Bitcoin as fiat currency, it is a step in the right direction.

Although the outside world believes that China has a blanket ban on cryptocurrencies, in reality, there is some adoption. The recent reality TV show on Chinese streaming channels follows the journey of a young woman who has to survive traveling around China with just BTC 0.2 in her phone. Watching the series, it becomes clear that China is progressing in the crypto world, with or without government intervention.

China is reportedly slowly opening up to Bitcoin and other cryptocurrencies as public penetration grows. Several hotels have started accepting payment in BTC (only from foreigners) while others are providing wide-ranging services in exchange for Bitcoin.

It appears that it is only a matter of time before China lifts the blanket ban on cryptocurrencies and allows unprecedented international trade through it.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pexels.com

The post China Opening up to Crypto appeared first on BitcoinNews.com.