Five ministries and commissions including the People's Bank of China issued the "Notice on Preventing Bitcoin Risks"
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In order to protect the public’s property rights and interests, protect the RMB’s legal currency status, prevent money laundering risks, and maintain financial stability, the People’s Bank of China, the Ministry of Industry and Information Technology, China Banking Regulatory Commission, China Securities Regulatory Commission, and China Insurance Regulatory Commission The committee recently jointly issued the "Notice of the People's Bank of China, Ministry of Industry and Information Technology, China Banking Regulatory Commission, China Securities Regulatory Commission, and China Insurance Regulatory Commission on Preventing Bitcoin Risks" (Yinfa [2013] No. 289, hereinafter referred to as "" notify"").
The "Notice" clarified the nature of Bitcoin, stating that Bitcoin is not issued by the monetary authority, has no monetary properties such as legal compensation and compulsion, and is not a currency in its true sense. In terms of nature, Bitcoin is a specific virtual commodity, which does not have the same legal status as currency, and cannot and should not be used as currency in the market. However, Bitcoin trading is a kind of commodity buying and selling behavior on the Internet, and ordinary people have the freedom to participate under the premise of their own risk.
The "Notice" requires that at this stage, financial institutions and payment institutions shall not use bitcoin as a price for products or services, shall not buy or sell bitcoins as a central counterparty, shall not underwrite insurance business related to bitcoins or include bitcoins in insurance liabilities Scope, it is not allowed to directly or indirectly provide customers with other services related to bitcoin, including: providing customers with bitcoin registration, trading, clearing, settlement and other services; accepting bitcoin or using bitcoin as a payment and settlement tool; developing bitcoin and Renminbi and foreign currency exchange services; carry out bitcoin storage, custody, mortgage and other businesses; issue bitcoin-related financial products; use bitcoin as the investment target of trusts, funds, etc.
The "Notice" stipulates that the Bitcoin Internet site, which is the main Bitcoin trading platform, should be filed with the telecommunications management agency in accordance with the provisions of the "People's Republic of China Telecommunications Regulations" and the "Internet Information Service Management Measures". At the same time, in view of the high money laundering risk of Bitcoin and the risk of being exploited by criminals, the "Notice" requires relevant institutions to effectively perform statutory anti-money laundering such as customer identification and suspicious transaction reports in accordance with the requirements of the Anti-Money Laundering Law of the People's Republic of China. Obligations to effectively prevent money laundering risks related to Bitcoin.
In order to avoid excessive speculation of virtual commodities such as Bitcoin in the name of “virtual currency”, which will damage the public interest and the status of RMB as legal tender, the “Notice” requires financial institutions and payment institutions to correctly use the concept of currency in their daily work, focusing on strengthening the The education of the social public currency knowledge includes the concepts of correct understanding of currency, correct view of virtual goods and virtual currency, rational investment, reasonable control of investment risks, and maintenance of their own property security into the content of financial knowledge popularization activities, and guide the public to establish correct currency concepts and concepts. Investment concept.
In the future, the People's Bank of China will continue to pay close attention to Bitcoin's trends and related risks based on its own responsibilities. (over)
Appendix:
People's Bank of China Ministry of Industry and Information Technology China Banking Regulatory Commission
China Securities Regulatory Commission China Insurance Regulatory Commission
Notice on preventing Bitcoin risks
Recently, a so-called "Bitcoin" calculated by a specific computer program has attracted widespread attention internationally. There are also some domestic institutions and individuals taking the opportunity to hype Bitcoin and Bitcoin-related products. In order to protect the property rights of the public, protect the legal currency status of the renminbi, prevent money laundering risks, and maintain financial stability, in accordance with the "People's Bank of China Law", "The People's Republic of China Anti-Money Laundering Law", and "The Commercial Bank Law of the People's Republic of China" ”, “People’s Republic of China Telecommunications Regulations” and other relevant laws and regulations, the relevant matters are hereby notified as follows:
1. Correctly understand the attributes of Bitcoin
Bitcoin has four main characteristics: no centralized issuer, limited total amount, unrestricted use by region, and anonymity. Although Bitcoin is called "currency", because it is not issued by the monetary authority, it has no monetary properties such as legal compensation and compulsion, so it is not a currency in its true sense. In terms of nature, Bitcoin should be a specific virtual commodity, which does not have the same legal status as currency, and cannot and should not be used as currency in the market.
2. Financial institutions and payment institutions must not carry out Bitcoin-related businesses
At this stage, financial institutions and payment institutions are not allowed to set prices for products or services in Bitcoin, cannot buy or sell Bitcoin as a central counterparty, cannot underwrite Bitcoin-related insurance business or include Bitcoin in the scope of insurance liability, and cannot directly or Indirectly provide customers with other bitcoin-related services, including: providing customers with bitcoin registration, trading, clearing, settlement and other services; accepting bitcoin or using bitcoin as a payment and settlement tool; conducting bitcoin exchanges with RMB and foreign currencies Services; carry out businesses such as storage, custody, and mortgage of bitcoin; issue bitcoin-related financial products; use bitcoin as the investment target of investment in trusts, funds, etc.
3. Strengthen the management of Bitcoin Internet sites
In accordance with the "Regulations of the People's Republic of China on Telecommunications" and the "Administrative Measures on Internet Information Services", Internet sites that provide services such as bitcoin registration and transactions should be filed with the telecommunications management agency.
The telecommunications management agency shall shut down illegal Bitcoin Internet sites in accordance with the determination and punishment opinions of the relevant management departments.
Fourth, prevent the possible money laundering risk of Bitcoin
The branches of the People's Bank of China should pay close attention to the trends and trends of Bitcoin and other similar virtual commodities with the characteristics of anonymity and cross-border circulation, earnestly study and judge money laundering risks, and study and formulate targeted preventive measures. All branches shall include institutions established in their jurisdictions according to law and provide services such as bitcoin registration and transactions into anti-money laundering supervision, and urge them to strengthen anti-money laundering monitoring.
Internet sites that provide services such as bitcoin registration and transactions should earnestly fulfill their anti-money laundering obligations, identify users, require users to register with real names, and register names, ID numbers and other information. Financial institutions, payment institutions, and Internet sites that provide services such as bitcoin registration and transactions, if they find suspicious transactions related to bitcoin and other virtual goods, they should immediately report to the China Anti-Money Laundering Monitoring and Analysis Center, and cooperate with the People’s Bank of China’s anti-money laundering monitoring and analysis center. Money laundering investigation activities; if you find clues to criminal activities such as fraud, gambling, money laundering, etc., using Bitcoin, you should report the case to the public security organ in time.
5. Strengthen the education of the public currency knowledge and reminder of investment risks
Various departments, financial institutions, and payment institutions should correctly use the concept of currency in their daily work, pay attention to strengthening the education of public currency knowledge, and will correctly understand currency, treat virtual goods and virtual currency correctly, make rational investment, reasonably control investment risks, and maintain Concepts such as the security of one's own property are incorporated into the content of financial knowledge popularization activities to guide the public to establish correct currency concepts and investment concepts.
All financial regulatory agencies may formulate relevant implementation rules based on this notice.
The Shanghai headquarters of the People's Bank of China, all branches, business management departments, and central sub-branches of provincial capitals (capitals) cities are requested to forward this notice to local financial institutions and payment institutions within their jurisdiction. Please report to the People's Bank of China in time for new situations and new problems discovered during the implementation of this notice.
Contact: Zhang Niannian, Tel: 010-66194489
People's Bank of China
Ministry of Industry and Information Technology
China Banking Regulatory Commission
Securities Regulatory Commission
China Insurance Regulatory Commission
December 3, 2013
China will always have a an excuse from now on when it comes to climate change talks at the table. 
Either way it is a win win for China, and the left wing has truly shown it's colors by not following China's lead on this one. Corruption will destroy the West (already is as we can see here), and China is laughing all along the way and still playing the long term game. I feel bad for the younger generations, its going to be a China superpower world in less than 20 years. Corruption = ineptness + no honor which in turn = eventual collapse.
coinmarketcap.com
