Chinese indicates possible crypto licence change of heart
The China Banking Regulatory Commission (CBRC) has published a working paper suggesting a move towards crypto activity licences. The move is significant because Chinese regulators have so far swerved away from any meaningful crypto licensing scheme.
The Study of Development and Regulations on Distributed Ledger Accounts, Blockchain and Digital Currency, was published yesterday by the CBRC, authored by researchers Li Wenhong and Jiang Zeshen.
The CBRC report suggests that crypto licensing extends not just to trading and ICOs but also any transaction linked to “distributed ledger accounts”.
“Any capital transaction that relates to distributed ledger accounts, blockchain, cryptocurrency and its derivatives, ICOs and exchange operations should all be regarded as financial services,” the report states. “Therefore they must be put under relevant financial regulatory frameworks.”
End to regulatory murk?
China’s somewhat opaque view on cryptos so far has hampered jurisdictional clarity. However there are increasing signs that the Chinese view is changing. At the end of May an editorial in the People’s Daily, China’s main official party mouthpiece, worried that China was being left behind “in the digital currency revolution”.
It added: “It’s time for China to lay the regulatory groundwork for its rise as a future digital currency trendsetter.”