China Is Looking For More Strict Oversight And Restriction For Crypto, Again

China Is Looking For More Strict Oversight And Restriction For Crypto, Again

A person close to the Chinese government told Caijing Magazine about the possibility of upcoming measures for strengthening the cryptocurrency industry restrictions previously presented to the public.

While the new restriction tags any commercial activities tied to cryptocurrencies as illegal, there was no legally approved framework for restricting individuals or companies from doing so; hence, the current law cannot be applied. That is why the government is looking for judicial interpretation.

Caijing's sources close to the Central Bank, are currently struggling to find the right way to implement regulatory requirements. Currently, regulators are digging into the mining and cryptocurrency industries to research the technical side of the question in order to provide the correct paths for conviction and sentencing.

While security institutions are responsible for taking action, the Central Bank's notice is being used as an instruction. The methods of executing the order are purely in the hands of the aforementioned regulators.

Currently, companies in China are legally prohibited from providing any service to businesses related to the cryptocurrency industry. The prohibition also applies to businesses functioning overseas. Companies that work overseas but provide services to Chinese individuals related to the cryptocurrency industry will also be held accountable in accordance with Chinese law.

Last but not least, Chinese residents also cannot act as a part of the p2p exchange on any platform. While the Central Bank's notice applies mostly to companies, individuals who, for example, provide cryptocurrency exchange on p2p platforms like Binance are also going to be held accountable if they decide to work after the released notice.