Owning Bitcoin is legal in China says Bank of China’s Council member
China has been strict towards Cryptocurrencies for a long time. Previously, China was considered as the top cryptocurrency trading region in the world until NDRC recommended to ban crypto trading activities.
According to NDRC (National Development and Reform Commission), crypto related activities, including mining and trading, are wasting more resources and does not benefit the economic growth of the country. ICO and crypto trading was already banned and named as illegal activities by China government.
However, according to a recent news report by The Beijing News, Xiao, the Council member of the Bank of China, stated that owning a bitcoin is still legal in China. He further noted that the ban was imposed on cryptocurrency trading and mining but not on cryptos itself. So, people of China can continue to hold bitcoins which they already have, and bitcoins can also be transferred among people of China itself.
2/ Xiao also believes if one runs BTC trading as a business and has caused significant customer losses w/ serious consequences, the possibility of punishment according to criminal law (225#4 Other illegal business practices that seriously disrupt market order) cannot be ruled out
— cnLedger (@cnLedger) May 22, 2019
International exchanges are illegal, but crypto transactions among the people of China are still legal. In the past, people lost their hard-earned money due to scammers. Scammers make the people believe that they would use the funds for crypto trading and share the profits back again. But after people deposit the money, the scammer would disappear.
That was just an example and activities like those that happened in the past. Stating these issues, Xiao mentioned that people who are organizing these illegal business activities would get punished under the act 225#4.
China is not just strict about cryptocurrencies but on almost all social media apps due to the security of its users. Facebook, Whatsapp, Google, Yahoo, and many other famous sites are blocked in China to use. Instead, they developed their own apps and websites like Line, Baidu to serve the purpose of blocked ones.
It is still unclear whether the Chinese government would reverse these actions against cryptocurrencies in the future. China may completely block crypto activities if they believe NDRC’s take on cryptocurrencies.
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