China does not recognize cryptocurrencies as legal tender and the banking system is not accepting cryptocurrencies or providing relevant services. The government has taken a series of regulatory measures to crack down on activities related to cryptocurrencies for purposes of investor protection and financial risk prevention. Those measures include announcing that initial coin offerings are illegal, restricting the primary business of cryptocurrency trading platforms, and discouraging Bitcoin mining. In the meantime, China’s central bank is reportedly considering issuing its own digital currency.
Source: Library of Congress
Important Regulators to Know
|Important Regulators to Know||Quick Description||In chinese|
|Ministry of Industry and Information Technology (MIIT)||state department responsible for the administration of China’s industrial branches and information industry||工业和信 息化部|
|China Center for Information Industry Development (CCID)||part of MIIT, publishes monthly rankings of Cryptocurrency||中国电子信息产业发展研究院|
|People’s Bank of China (PBOC)||China’s central bank||中国人民银行|
|China Banking Regulatory Commission (CBRC)||regulates banking and financial institutions in China under the State Council||银监会|
|Leading Group of Internet Financial Risks Remediation||China’s top internet-finance regulator||互联网金融风险专项整治工作领导小组|
|Cyberspace Administration of China||central Internet regulator, censor, oversight, and control agency for the People’s Republic of China||国家互联网信息办公室|
List of crypto-related companies and exchanges
comment: there are many crypto companies and projects in China, but aforementioned ones are the most relevant ones and largest by revenue
Timeline of Happenings
December 2013: The People’s Bank of China issues a warning notice on the risks of Bitcoin, and prohibits all crypto operations for financial institutions
December 2016: The Chinese government adds blockchain technology to its five-year technology plan
June 2017: The People’s Bank of China begins testing a prototype state-backed digital currency — the Bank sends several transactions between it and some of the country’s commercial banks.
September 2017: The Chinese government imposes regulation banning all Initial Coin Offerings (ICOs) and crypto-to-fiat exchanges
January 2018: The Chinese government imposes regulation banning P2P sales and over-the-counter markets
February 2018: The Chinese government blocks access to foreign crypto exchanges and ICO websites
May 2018: President Xi Jinping makes a speech about the importance of pursuing technological research and mentions blockchain amongst revolutionary technologies such as artificial intelligence and the Internet of Things.
May 2018: CCID Research Institute of the Ministry of Information and Technology announces that a committee is being set up to establish a national standard for blockchain, with an expected completion date at the end of 2019.
June 2018: China Central Television hosts a one hour special on blockchain technology with participants from the Chinese government; broadcaster touts blockchain as having an economic value “10 times that of the internet.”
To learn more about the rest of Asia, start off with our GCR Asia Assessment grid: