Bitcoin Exchanges Lack Legal Foundation, China Internet Finance Association Says

A self-regulatory association in China focused on digital finance has issued a new warning on cryptocurrency trading activities.

In a statement released today, China’s National Internet Finance Association (NIFA) asserted that cryptocurrencies like bitcoin have become a tool for speculation among investors, while also serving as a payment conduit for illegal fundraising and money laundering. Although a self-regulatory organization and not a regulatory agency itself, NIFA was first initiated in 2015 by the People’s Bank of China and approved by the State Council.

The release comes just under two weeks after NIFA published a warning on initial coin offerings, or ICOs, which itself was followed by a ban on the funding model by Chinese regulators. Exchanges and other services focused on ICOs have since moved to halt operations or shut down entirely in the wake of that decision.

Of note is the comment that trading platforms for cryptocurrencies in China are not legally sanctioned, with the organization stating:

“Any trading platform for any kind of so-called ‘coin’ has no legal base of foundation in China.”

The notice came days after reports emerged that China’s regulators are reportedly moving toward new restrictions on the country’s cryptocurrency exchanges. Thus far, however, no official announcement has been seen from either the People’s Bank of China or other agencies within the government.

Major exchanges in China, including Huobi, BTCC and OKCoin, still continue operating, while others are exiting the market while citing the regulatory concerns.

Image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Comments

comments

Filed in: Bitcoin Buzz Tags: ,

You might like:

Global Securities Watchdog Warns Investors on ICO Risks Global Securities Watchdog Warns Investors on ICO Risks
Bitcoin Devs Release Long-Awaited Schnorr Paper for Scalability Gains Bitcoin Devs Release Long-Awaited Schnorr Paper for Scalability Gains
NYSE Parent Company Launches Cryptocurrency Data Feed NYSE Parent Company Launches Cryptocurrency Data Feed
Where'd You Get That Token? 7 Platforms Managing ICOs Where'd You Get That Token? 7 Platforms Managing ICOs
The ECB Wants to Hear Your Cryptocurrency Questions The ECB Wants to Hear Your Cryptocurrency Questions
2018's Challenge: Promote Responsible Blockchain Innovation 2018's Challenge: Promote Responsible Blockchain Innovation
Stuck at $12K: Bitcoin Price Needs Quick Progress to Avert Further Losses Stuck at $12K: Bitcoin Price Needs Quick Progress to Avert Further Losses
Why São Paulo Wants to Pay for Infrastructure with Cryptocurrency Why São Paulo Wants to Pay for Infrastructure with Cryptocurrency
© 4917 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.