Prepping for a Cryptocurrency World: China Version

Fast ahead to today, fifth February to be correct, authorities in China have only unveiled a new pair of regulations to ban cryptocurrency. The Chinese government have performed therefore a year ago, but several have circumvented through foreign exchanges. It has enlisted the almighty'Good equipment Firewall of China'to block access to international exchanges in a bid to stop their citizens from carrying out any cryptocurrency transactions.

To learn more about the Chinese government stance, let us backtrack a couple decades back again to 2013 when Bitcoin was increasing recognition among the Chinese citizens and prices were soaring. Concerned with the price volatility and speculations, the People's Bank of China and five different government ministries published the state detect on December 2013 called "Recognize on Preventing Economic Risk of Bitcoin" (Link is in Mandarin). A few factors were highlighted:

Because of numerous factors such as for instance limited source, anonymity and lack of a centralized issuer, Bitcoin is not really a standard currency but a virtual product that can't be utilized in the start market.Due to the anonymity and cross-border features of Bitcoin, organizations providing Bitcoin-related solutions must apply preventive measures such as for instance KYC to avoid income laundering. Any dubious activity including fraud, gambling and income laundering must to be reported to the authorities.

 Agencies giving Bitcoin-related services ought to train the general public about Bitcoin and the technology behind it and maybe not mislead the general public with misinformation.In layman's term, Bitcoin is categorized as a digital commodity (e.g in-game credits,) that can be bought or bought in their unique variety and not to be changed with fiat currency. It can not be identified as money- something that provides as a moderate of trade, a product of accounting, and a store of value.