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There Is No Legal Basis for Platforms Which Engage in the Trading of Various Forms of “Virtual Currencies”

Update: BTCChina announced tonight that they will stop all trading on Sept. 30, 2017 and Dragon TV aired that all domestic exchanges will be shut down.

The announcement reads that:

After carefully considering the “Seven Regulatory Bodies’ Announcement on Preventing Risks Associated With Token Fundraising,” (http://www.csrc.gov.cn/pub/newsite/zjhxwfb/xwdd/201709/t20170904_323047.html) BTCChina has decided to:

1. Immediately stop accepting new account registrations on BTCChina Exchange.

2. Stop all trading on BTCChina Exchange on Saturday, September 30th.

We apologize for the inconvenience. Please note that BTCChina Pool is not affected; customers will still be able to use our mining pool services.

If you have any questions, please contact our online customer service at [email protected].

National Internet Finance Association of China(NIFA) on Sept. 13 posted a notice on risk prevention and control of  “Virtual Currencies”. On August 30 NIFA released a notice warning investors risks of ICOs and in the next few days, ICOs are defined as illegal fundraising and all ICO tokens are delisted from exchanges. What to expect this time?

The Notice reads:

In recent years, the so-called “virtual currencies”, including Bitcoin, Litecoin, and various forms of tokens, have been traded in a centralized manner on a number of Internet platforms. With an increasing number of participants in virtual currency trading, financial and social risks have accumulated to a level that cannot be ignored. In order to help the public correctly understand virtual currencies such as Bitcoin, discern investment risks, and protect their own rights and interests, we hereby caution investors on the following matters:

The prices of “virtual currencies”, which lack sound valuation basis and are prone to intense market speculation, are highly volatile. Investors who blindly follow market speculation on virtual currencies are highly likely to incur losses. Therefore, investors are advised to enhance their awareness of risks. Furthermore, it is worth noting that “virtual currencies” are increasingly used as a tool in criminal activities such as money laundering, drug trafficking, smuggling, and illegal fundraising. Investors should stay vigilant and report any clues of illegal activities to the authorities immediately.

Investors who engage in speculations on “virtual currency” trading platforms are susceptible to risks related to significant price volatility and security issues. These risks are further compounded by technical risks inherent to the platforms. There have been a number of cases of hacking and theft targeting trading platforms across the world. Investors should bear such risks on their own. In addition, virtual currency trading platforms are increasingly used by criminals to conduct illegal activities, leading to significant legal risks. In recent days, regulatory authorities have suspended the operation of all trading entities engaged in ICO (Initial Coin Offering) activities. So there is no legal basis for platforms which engage in the trading of various forms of “virtual currencies”.

NIFA hereby calls on all member institutions to fulfill their commitment to industry self-regulation, abide by national laws and regulatory rules, refrain from participating in or providing services for any forms of centralized trading of “virtual currencies”, and take the initiative to resist illicit financial activities.

Translator: Huang Chengxuan   Proofreader: Qi Jianhui  Zhou Guolin Xin Lu

COMMENTS(4)

  • BitcoinAllBot
    3 months ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • dawarriortheycallneo
    3 months ago dawarriortheycallneo

    No legal basis yet. Once they get licensed they will be legal.

  • UpsDownsandValleys
    3 months ago UpsDownsandValleys

    Was posted this morning already.

  • tmornini
    3 months ago tmornini

    Well, that’s just like, your opinion, man…

    It appears to be from a self-ascribed fintech association whos members operate web businesses associated with the national monetary system.

    It’s encouraging their members to not get engaged with cryptocurrencies.

    Perhaps Jamie Dimon is a board member?

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