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Chinese Banking Authority Wants to Regulate Cryptocurrencies and Initial Coin Offerings

ยท 02 Jul 2018 in Crypto News, Home
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

The Chinese government may be considering creating regulations for Initial Coin offerings (ICOs). This would be good news after the ban that the country imposed to the market during 2017. At the same time, a venture fund located in China announced that it is going to invest 200,000 ether (ETH) in cryptocurrency projects from United States.

China May Soon Lift the Ban on Cryptocurrencies

According to a paper released back on June the 28th, China may be changing its stance towards cryptocurrencies. The China Banking Regulatory Commission (CBRC) showed a positive position on virtual currencies and the market. The CBRC explained that lawmakers have to introduce licenses for crypto-related businesses that operate in the country. 

The paper has been written by Jiang Zeshen and Li Wenhong, two researchers at the CBRC. The document is a study on development and regulations on blockchain technology, digital currencies and distributed ledger technologies.

The research reads as follows:

“Currently, any capital transaction that relates to distributed ledger accounts, the blockchain, cryptocurrency and its derivatives, ICOs and exchange operations should all be regarded as financial services. Therefore, they must be put under relevant financial regulatory frameworks so that they can operate legally with a license.”

The study was completely focused on cryptocurrencies, businesses, Initial Coin Offerings, derivative trading, and blockchain technology.

Another important news coming from China is the fact that Mammoth is preparing an important investment in ETH plan for United States companies related to cryptocurrencies.

At the moment, the company is an investor in different companies including HBUS, Huobi’s U.S. Strategic partner. The company was also present at the Blockchain Connect Conference that was held back in Silicon Valley on June the 27th.

Other companies that received funds from Mammoth were Huobii, Jinse and ColdLar. This means that the company has been helping Huobi, one of the most important crypto exchanges around the world by trading volume to acquire is position in the market. It is also important to mention that China had more blockchain patents registered than any other country in the world.

Moreover, a former Chinese exchange giant – BTCC – declared that they will reopen the exchange.

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