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Virtual Currency like Bitcoins to be deemed illegal in China

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The unicorn of Virtual Currency market, Bitcoin’s golden period is not looking so golden now, It’s China’s war against Cryptocurrency that puts millions of dollars in investments in danger.
Cryptocurrencies to be deemed illegal in China: People’s Bank of China

China VS Virtual Currency

Its China VS Bitcoin now, China is waging war against things if not against nations, now it’s Cryptocurrencies. The biggest and strongest financial entity in China “The PBanke’s bank of China” banned the initial Coin Offerings of Cryptocurrency. Initial coin offerings mean to raise money by rolling out new digital tokens.
China has a new target on its internet hit list: Cryptocurrency.
On 5th September 2017 1500 hours Chinese time; “The People’s Bank of China” declared that circulation, exchange, sale, raising funds of cryptocurrency etc is deemed illegal and will attract criminal proceedings against people who do them and the cases will be transferred to Judiciary. It’s not relevant to news but just to let you know Chinese conviction rate is 99.95%.
According to PRC government, they have to issue this order because of the illegal activities that were going on with such currency. To think of the impact, the Bitcoin took the first hit, it’s stock went down way faster than anticipated.

Here is the excerpt of People’s Bank of China’s press release

1 An accurate understanding of the essential properties of the custody financing activities

Toll coin financing refers to the financing of the main body through the token of illegal sale, circulation, to investors to raise Bitcoin, currency and other so-called “virtual currency” is essentially a non-approved illegal open financing behavior, suspected of illegal sale Tokens, illegal securities issuance and illegal fund-raising, financial fraud, pyramid schemes and other criminal activities. The relevant departments will closely monitor the dynamics, strengthen cooperation with the judicial departments and local governments, in accordance with the existing working mechanism, strict law enforcement, resolutely control the market chaos. Found suspected criminal problems, will be transferred to the judiciary.
The tokens or “virtual currency” used in coinage financing are not issued by the monetary authorities, do not have legal and monetary properties such as indemnity and coercion, do not have legal status equivalent to money, and can not and should not be circulated as a currency in the market use.

2. No organization or individual may engage in unauthorized custody financing activities

As of the date of this announcement, all types of currency issuance financing activities shall cease immediately. The organizations and individuals who have completed the financing of the tokens should make arrangements for repatriation and so on, reasonably protect the interests of investors and properly handle the risks. The relevant departments will seriously investigate and deal with non-stop tokens issued financing activities and the completion of the tokens issued financing projects in the illegal acts.
Third, strengthen the management of tokens financing trading platform
As at the date of this announcement, any so-called tokens financing trading platform shall not engage in the exchange of legal currency and tokens, “virtual currency”, and may not be traded or sold as a central counterparty to sell tokens or “virtual currency” Not for the tokens or “virtual currency” to provide pricing, information services and other services.
For the existence of illegal problems on behalf of the coin-financing trading platform, the financial management department will be submitted to the telecommunications authorities in accordance with the law to close their website platform and mobile APP, submitted to the network of mobile APP in the application store to do the next frame disposal, and brought the business administration in accordance with the law Revoke its business license.

4. Financial institutions and non-bank payment institutions shall not carry out business related to tokens financing transactions

Financial institutions and non-bank payment agencies may not directly or indirectly provide financing and “virtual currency” to provide account opening, registration, trading, liquidation, settlement and other products or services, shall not be covered and tokens and “virtual currency” Of the insurance business or the tokens and “virtual currency” into the scope of insurance liability. Financial institutions and non-bank payment agencies found that the currency issuance of financing transactions illegal clues should be promptly reported to the relevant departments.

Fifth, the public should be highly alert to the risk of currency issuance financing and trading risks

There are multiple risks in the issuance of coins and transactions, including false asset risk, risk of business failure, and risk of investment speculation. Investors are required to bear the risk of investment. We hope that the majority of investors will be deceived.
The use of the “currency” of the various types of illegal financial activities, the public should strengthen the risk prevention awareness and recognition ability, timely reporting of relevant illegal clues.

Sixth, give full play to the role of industry organizations self-discipline

All kinds of financial industry organizations should do a good job of policy interpretation, and urge the member units to consciously resist the illegal financing activities related to the currency issuance financing transactions and the “virtual currency”, away from the market chaos, strengthen investor education and jointly maintain the normal financial order.

Your Action

So you can not do anything with your Cryptocurrency in china for now, but if you are outside china you can do whatever you want, or use a proxy if you are inside china and want to dump all your Cryptos. Do that at your own risk, remember 99.95% conviction rate.

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