A working paper published by the China Banking Regulatory Commission (CBRC) proposes regulatory measures and the issuance of licenses for activities related to cryptocurrencies.
On June 28, researchers from the CBRC, Jiang Zeshen and Li Wenhong, published a working paper, entitled “The Study of Development and Regulations on Distributed Ledger Accounts, Blockchain and Digital Currency”.
The document, fully devoted to normative research in the field of cryptocurrency and related technologies, summarizes the various legal measures taken by various jurisdictions to manage activities related to brokering, cryptocurrency, derivative operations, as well as ICO.
Commenting on how China should move forward on this issue, the authors shared their proposals in the document:
“At present, any capital transaction related to distributed accounts, blocking, cryptocurrency and its derivative instruments, based on it, ICOs and exchange transactions, should be treated as financial services. Therefore, they should be placed in the appropriate financial regulatory framework so that they can operate legally through licenses.”
Although the document says that comments made by researchers don’t necessarily represent the institution’s position, this proposal is still noteworthy given that Chinese regulators haven’t mentioned anywhere about licensing of activities related to cryptocurrency.
In addition, the document suggests that the potential structure associated with crypto activities isn’t limited to ICOs and trading, but also deals with transactions related to distributed accounts.
As previously reported, the decree of the People’s Bank of China (PBC), issued together with six other regulatory bodies, including the CBRC, last year stated that “ICO and trading using cryptocurrency are prohibited because they are unlicensed financial activities.”
However, since the regulators didn’t specify whether considered licensing structure for cryptocurrency activities.