China Justice Observer

中司观察

EnglishArabicChinese (Simplified)DutchFrenchGermanHindiItalianJapaneseKoreanPortugueseRussianSpanishSwedishHebrewIndonesianVietnameseThaiTurkishMalay

China Toughen Rules for Virtual Currency Supervision

Thu, 08 Jul 2021
Categories: China Legal Trends

On 18 May 2021, the National Internet Finance Association of China, China Banking Association, and the Payment and Clearing Association of China jointly released the “Announcement on Preventing Speculative Risks in Virtual Currency Trading(the “Announcement”, 关于防范虚拟货币交易炒作风险的公告). Pursuant to the Announcement, the virtual currency is not a legal tender, but a specific virtual commodity, which is not issued by monetary authorities, not recognized by law as a means to settle any debt, has no mandatory acceptance or other attributes of currency, and thus shall not and can not be used as a legal tender in the market.

In accordance with the Announcement, members such as financial institutions and payment institutions shall practice with enhanced social responsibilities, and are prohibited from using any virtual currency for product or service pricing, underwriting any virtual currency-related insurance policy, or include any virtual currency in any insurance policy coverage, or directly or indirectly providing customers with any other service related to virtual currencies.

Subsequently, on May 21, the Financial Stability and Development Committee of the State Council in a conference explicitly proposed to crackdown on Bitcoin mining and trading activities. This was the first time that the State Council put forward clear requirements for cracking down on bitcoin mining and trading activities.

 

 

Cover Photo by Kevin Gu (https://unsplash.com/@kevinkoo) on Unsplash

Contributors: CJO Staff Contributors Team

Save as PDF

You might also like

SPC Releases Typical Cases to Support Hong Kong Arbitration

In September 2024, China’s Supreme People’s Court (SPC) released six typical cases to demonstrate its support for Hong Kong arbitration, emphasizing judicial cooperation and the recognition of arbitral awards to foster international arbitration development.

SPC Sets Standards for Punitive Damages in Food Safety

In August 2024, China’s Supreme People’s Court (SPC) issued a judicial interpretation that addresses punitive damages in food safety cases, featuring typical cases to establish uniform standards and enhance consumer protection.

Authenticating Documents for Use in Chinese Courts: Apostille or Not?

The 1961 Apostille Convention, effective in China as of November 2023, simplifies the authentication of foreign documents for use in Chinese courts by replacing traditional consular legalization with apostille. Note that authentication is only required for certain types of documents under Chinese law, and the apostille process applies only when the 1961 Convention is relevant.

SPP Releases 2024 Mid-Year Case Data

In the first half of 2024, China's Supreme People's Procuratorate (SPP) reported significant increases in arrests and prosecutions, as well as a notable rise in retrials based on their recommendations in civil cases.

China Intensifies Crackdown on Cross-Border Telecom Fraud

In July 2024, China's Supreme People’s Procuratorate (SPP), Supreme People’s Court (SPC), and the Ministry of Public Security released ten typical cases to highlight their intensified efforts to combat cross-border telecom and online fraud, emphasizing organized crime and emerging technologies.

China's Clean Energy Progress Report (2024)

China's 2024 white paper titled “China’s Energy Transition” shows clean energy now makes up 58.2% of installed power capacity, with wind and solar increasing tenfold over a decade, and clean energy consumption rising from 15.5% to 26.4% of total energy use.

SPC Releases Typical Cases on Foreign Law Ascertainment

In July 2024, China's Supreme People's Court (SPC) issued its first batch of typical cases to illustrate the application of foreign laws, aiming to enhance the judiciary's understanding of its 2023 judicial interpretation on ascertainment of foreign law.

China Updates Regulation for State Secrets Law

In June 2024, China revised the implementing regulation for its State Secrets Law, enhancing classification procedures, personnel confidentiality management, and secrecy inspection standards.