Chinese CBRC proposed to introduce licensing of cryptocurrency business

In a working paper published by the Commission on regulation of banking activity in China (CBRC) indicated the need for licensing by local regulatory authorities activities related to the cryptocurrency.

The authors of the document called «study of the development and regulation of technologies of the distributed registry of the blockchain and the digital currencies» have become researchers CBRC Whether Wangon (Wenhong Li) and Jiang Czechen (Jiang Zeshen). The document was published on Wednesday 27 June.

The whole document is devoted to the investigations of the regulator in relation to cryptocurrencies. In addition, it briefly describes the legal efforts of various jurisdictions to manage activities related to the derivatives of cryptocurrencies, as well as with ICO. The document says:

«Currently, any capital transaction related to the distributed registry, blockchain, cryptocurrency and its derivatives, ICO and swaps should be treated as financial services. Therefore, they should be placed in the appropriate financial regulatory framework for the legitimate work on the basis of the license».

Although the document States that the researchers do not necessarily reflect the views of the regulator, this proposal is still quite remarkable. The first time Chinese regulators in favour of a licensing scheme cryptocurrency companies, which was adopted in the United States and Japan.

In addition, the document notes that potential regulation should not be limited to only ICO and cryptocurrency trading and should apply to any service which deals with transactions related to Baccano.

As previously reported, the decision of the people’s Bank of China and six other regulators, including CBRC, resulted in a ban
ICO and cryptocurrency trading in the country in the fall of 2017 due to the fact that they represent an unlicensed financial activities. However, it is about the licensing of cryptocurrency transactions not previously walked, and today’s announcement is the first such precedent.

One of the most famous examples of licensing cryptocurrency companies can boast the US and Japan. In new York the infamous rules Regulations forced a cryptocurrency and blockchain startups to leave the state, in connection with impossibly high requirements of the regulator. Recently, however, reports emerged that the disputed regulation could be revised.

In Japan the situation is somewhat better – where the system operates with the purpose of regulating the activities of exchanges, not to suppress innovation. But in the land of the Rising Sun is not so smooth recently FSA Japan tightened
licensing requirements of cryptocurrency exchanges in connection with the frequent break-ins and problems in the security system platforms.

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