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Interpretation of the recent speeches of the three associations and the Prime Minister on the policy of the currency circle



Recently, the China Internet Finance Association, the China Banking Association and the China Payment and Clearing Association announced on preventing the risk of speculation in virtual currency transactions, and Premier Liu He hosted the 51st meeting of the Financial Stability and Development Committee of the State Council: Cracking down on Bitcoin mining And transaction behavior, resolutely prevent individual risks from documents or speeches transmitted to the social field, many OTC merchants or currency circle players come to consult me, can digital currency still play? How to deposit and withdraw money in the future? Here, I will unify my interpretation and understanding of the policy, and I will not answer them one by one.

Regarding the content-zce of the three associations, the first is to correctly understand the essential attributes of virtual currency and related business activities. Virtual currency is a commodity and cannot be used as legal tender. This article explains that virtual currency is a commodity, and you can hold digital currency, but you cannot treat it as a legal currency (in China, it is RMB), and exchange various commodities in the market at will. Second: Relevant institutions are not allowed to carry out businesses related to virtual currency. This article is mainly aimed at financial institutions and payment institutions providing digital currency pricing, liquidation and other services, and it cannot be used as investment targets such as trusts and funds. Internet platform enterprise member units are not allowed to provide online business premises, commercial exhibitions, marketing promotions, paid backflows and other activities for virtual currency-related business activities. Third: Consumers should raise their awareness of risk prevention and beware of loss of property and rights. This article mainly emphasizes that digital currency, as a hyped commodity, has no real value to support, and its price is easy to be manipulated. Judicial practices for digital currency vary from place to place, and it may not necessarily obtain judicial protection. Please prevent risks by yourself. Fourth: Strengthen the self-discipline management of member units, that is to say, the notice has been issued, and members of the above three units must self-discipline, otherwise they will be punished accordingly.

Proposal on adding a liquidity module to the Cosmos Hub in the next upgrade: On March 2, Cosmos information provider and node verifier B-Harvest submitted a proposal for the adoption of a liquidity module in the Cosmos Hub, Cosmos Prop 38, aimed at Assessing community support for adding a liquidity module to the Cosmos Hub during the next upgrade. If Cosmos Prop 38 is passed, B-Harvest plans to submit a second proposal in mid-March 2021, proposing to provide bounties for trading competitions in the incentivized testnet in the form of ATOMs in community funds. The machine will be launched in April. Once all testing and security audits are complete, B-Harvest will submit a third governance proposal to initiate the chain upgrade of CosmosHub including the liquidity module. [2021/3/2 18:06:04]

The above content-zce about the three associations is mainly aimed at the "Notice on Preventing Bitcoin Risks" issued by the People's Bank of China and other five ministries and commissions on December 5, 2013. It has been reiterated and emphasized again, and there is no additional content. Therefore, all the friends in the currency circle are requested to pay attention to legal risks under the condition of taking risks at their own risk. Also, financial institutions, payment institutions, and members of the Internet Association are requested to follow the national policies and follow the above policy requirements, and do not try to develop Various virtual currency businesses, trying to develop into the currency circle.

Announcement | OKEx Regarding ETT Portfolio Trading - BCH Fork Processing Rules: According to the OKEx announcement, since the currently configured BCH has been forked into BCHABC and BCHSV, according to the platform snapshot, the number of BCH in the ETT portfolio is 163.1640, and 163.1640 BCHABC can be claimed and 163.1640 BCHSV, so the processing plan is as follows: A. November 19: The system will claim BCH assets as BCHABC and BCHSV. And sell BCHSV into USDT; B. Because there are many unknowns in the current market, for OK06ETT before "rebalancing" on Friday, a suitable sample will be re-selected to replace the BCH component. C. When the replacement components are confirmed, during the "rebalance" on this Friday (November 23), sell the current "USDT" and "BCHABC" and allocate new asset components. D. Subscriptions and redemptions will be suspended until the rebalancing this Friday. [2018/11/19]

Premier Liu He presided over the 51st meeting of the Financial Stability and Development Committee of the State Council: resolutely prevent financial risks. Adhere to the bottom line thinking, strengthen the comprehensive scanning and early warning of financial risks, promote the supervision of financial activities of platform companies, crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field. According to the author's understanding, a large number of financial institutions and listed companies in the United States have recently entered into virtual currency, and domestic financial institutions and listed companies are also eager to try. However, the money of financial institutions and listed companies is basically the money of ordinary people. Due to the lack of supervision in the digital currency industry , Rise and fall, once domestic financial institutions or listed companies enter the virtual currency industry, resulting in a sharp rise and fall of funds, the final injured must be ordinary people, which will lead to the transfer of individual risks to social risks. Therefore, Premier Liu He's crackdown on Bitcoin mining and trading is mainly aimed at the financial activities of platform companies (financial institutions, clearing institutions, Internet companies, listed companies, etc.).

Jinse Finance live report Peter D. Santori: At present, there is no ICO in the United States registered with the SEC, and the SEC has not allowed any financial products related to encrypted digital currency: Jinse Finance live report, discussing macroeconomics at the World Blockchain Conference Three O’clock Summit In part, Peter D. Santori, a former regulatory officer and compliance officer of the Chicago Stock Exchange, made a speech titled "The Future Financial and Economic Landscape under Blockchain Technology" and pointed out that currently no ICO is registered with the SEC, and the SEC has not allowed Any exchange products (ETFs, etc.) about cryptocurrencies; although many people are promoting digital currencies, the relevant laws are lagging behind. Peter reminded that currently there is no ICO in the United States that is regulated by the U.S. stock exchange, and a safer regulatory situation is required for it to be called a security. To become a security, it needs to prove that it has the function of a security, and prevent legal loopholes and gray areas. Regulatory authorities must ensure that investors invest in real commitments; regulatory authorities are very worried about the circulation of these investment products in the secondary market. Because these investment products are highly profitable, more and more funds are involved. Although they are not securities, But it is also an important way of capital circulation, so it also needs to be regulated. The U.S. Congress is also involved in the regulatory process, and regulatory regulations may be introduced in the near future. [2018/4/24]

In addition, regarding the "mining" behavior in the currency circle, there are a large number of projects using DEFI as a fig leaf, under the banner of mining, it is actually the third-generation variant of ICO (ICO-IEO-DEFI mining), allowing mining The miners participated in the initial stage of stable coin mining (the currency circle called "white whoring"), and let the latecomers mine through LP (trading pair), resulting in a continuous decrease in their assets, making investors think that the loss is entirely due to The behavior of own investment leads to. Of course, the current DEFI mining investors are no longer the initial investors of ICO. Those who can go to DeFI mining are the small partners in the currency circle with certain technology and investment threshold. Finally, DEFI is a technological innovation, but it is currently in a very early stage, and there are some high-quality projects, but ordinary investors do not have the basic ability to screen and identify projects, so they must participate carefully to avoid loss of assets.

The first movie about Bitcoin in China, "Crazy Bitcoin": According to Netease Entertainment, the movie "Crazy Bitcoin" was launched on January 28, 2018, and a press release was held in the banquet hall of Tangshan Seafood Restaurant on March 4. There will be a launching ceremony. Nearly 300 people from all walks of life and dozens of news media participated. The film was produced by Yue Xuegang and directed by Chen Taiyuan. This will be the first movie about Bitcoin in China. [2018/3/14]

To sum up, digital currency as a commodity on the Internet is not illegal for personal holding and mutual buying and selling, but banks, as financial institutions, cannot provide digital currency transactions in accordance with national policies. Financial services, so investors are deprived of bank counters or asked to cancel their bank accounts, and digital currency players must also give understanding and support. The author hereby reminds that personal holdings and mutual buying and selling behaviors between individuals must not be used by criminals to buy or sell coins for unknown people, or buy and sell virtual currencies to unfamiliar people. The person may be someone involved in online gambling, telecommunication fraud, or an underground bank, so as not to be implicated as an accomplice or to cover up and conceal criminal proceeds for them, and thus be punished by the criminal law.

The author of this article: Sun Jun, partner lawyer of Shanghai Shenhao Law Firm, postgraduate student of Shanghai Jiao Tong University, Master of Finance and Investment Management, Hong Kong University.


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