The People's Bank of China once again strengthened its supervision of the Bitcoin trading platform. The bitcoin trading platforms that have been severely suppressed in China have planned to go out to sea, and over-the-counter trading has resurfaced. The central bank said that it is difficult to escape supervision from the sea. In response to the above situation, it was found that one family closed down.
Recently, news from the People’s Bank of China has once again strengthened the supervision of the Bitcoin overseas trading platform. With the strengthening of supervision, the domestic trading platform has gradually died down, but after the “reformed faceâ€, they turned to OTC transactions or turned to “going out to seaâ€. Some platforms actually realized the on-market transactions of RMB and virtual currency in disguise.
The central bank’s media reported recently that the People’s Bank of China will adopt a series of regulatory measures, including the suppression of relevant commercial presences, and the elimination and disposal of domestic and foreign virtual currency trading platform websites, for domestic and foreign ICO and virtual currency transactions. In the future, as long as one family is found to be shut down, at the same time, the future development of the situation will not rule out the possibility of further regulatory measures.
The reporter learned that the further elimination of the over-the-counter trading platform and the blocking of its overseas trading service websites and APPs.
Over-the-counter resurgenceOn September 4, 2017, the seven ministries and commissions including the People's Bank of China issued the “Announcement on Preventing the Risk of Subsidy Issuance Financing†(hereinafter referred to as the “Announcementâ€), and urgently suspended the ICO activities. Subsequent measures were taken to require the virtual currency exchange to completely shut down all its trading activities in China by September 30, 2017.
It is understood that as of now, the virtual currency exchanges and ICO platforms that have been exhausted by various places have basically achieved risk-free exit. After the clean-up and rectification, the amount of virtual currency transactions denominated in RMB fell from more than 90% of global trading volume to less than 1%.
However, the National Internet Financial Security Technical Expert Committee (hereinafter referred to as the “National Mutual Committeeâ€) issued the “November Bitcoin Over-the-Counter Monitoring Report†released on November 30, 2017, showing the domestic ICO and Bits in early September. The business of currency trading was cleared, and the scale of over-the-counter trading boomed again. In the last two weeks of November alone, the total amount of Bitcoin transactions of the three overseas over-the-counter trading platforms of LocalBitcoins, Paxful and CoinCola reached 680 million yuan.
The so-called over-the-counter trading is a one-to-one transaction by a counterparty through private negotiation. For virtual currency such as Bitcoin, the existence of over-the-counter trading is earlier than the on-floor transaction.
The National Mutual Gold Special Committee monitored and found that as of November 25, 2017, there were 21 C2C over-the-counter trading platforms supporting Bitcoin against Renminbi, and the online time was concentrated from late October to November. The National Mutual Gold Special Committee also found that the business content of the OTC trading platform has become increasingly diverse, and the transaction currency has been continuously enriched. According to statistics, 21 platforms have launched 16 kinds of virtual currency. In terms of payment methods, Alipay and bank transfer are still the mainstream.
The reporter has logged into an over-the-counter trading platform set up by a domestic virtual currency company. There are buyers and sellers buying and selling information on the platform. After the buyer “takes down†a certain amount of bitcoin, the platform locks the seller’s bitcoin. . According to the agreed payment method, the buyer pays the RMB to the seller and confirms the payment. After the seller receives the renminbi payment, it confirms that the transaction is successful, and the platform automatically releases the locked bitcoin to the buyer. The platform acts as an intermediary to charge a certain percentage of the handling fee for each transaction that is successful in the transaction.
According to the monitoring report, from the location of the website server, the above-mentioned platform websites are mainly distributed in Hong Kong, the United States, Japan and other places in China. There are three main modes: First, the C2C over-the-counter franchise mode, which only operates the C2C over-the-counter business. A total of 15; the second is the wallet APP + OTC mode, through the addition of instant messaging and other modules, this platform integrates the OTC transaction function into the Bitcoin wallet APP, a total of two; Third, the on-site + OTC transaction business model , namely, concurrently trading in currency currency and Bitcoin against RMB over-the-counter transactions, a total of four. It is worth noting that some of these platforms have realized the disguised intraday trading of RMB and Bitcoin to some extent by opening up the virtual transfer channel between the C2C over-the-counter trading and the currency trading fund account.
Found a family closedIn response to the above situation, on January 26, the risk warnings issued by the China Internet Finance Association (hereinafter referred to as the “Associationâ€) also noticed the behavior of some investors to carry out related activities abroad, and reminded investors that “there is system security in the same way as overseas platforms. Risks such as market manipulation and money laundering."
The risk warning said that as governments around the world pay attention to strengthening supervision of the virtual currency field, some overseas trading platforms may be forcibly banned by the host government, and some overseas trading platforms have been restricted from access due to obvious compliance risks. In this context, domestic investors will face certain risks when they turn to overseas platforms to participate in transactions.
At the same time, the association’s monitoring found that some institutions or individuals in the country are still organizing so-called currency transactions and over-the-counter transactions, and are equipped with services such as market makers and guarantors. This is still a virtual currency trading venue. Obviously inconsistent with current policy provisions. The Association reminds investors that the above behaviors are subject to policy risks. Investors should take the initiative to strengthen risk awareness, maintain rationality, and stay away from all kinds of illegal financial activities.
Prior to this, the relevant departments have already made demands on the specification of bitcoin mines, canceling the previous tariffs and taxes related to bitcoin mining, in this way to gradually guide the compression and retreat of some substandard bitcoin mines. field. In addition, the regulatory authorities last year imposed a request to payment institutions to prohibit third-party payments from providing trading services to digital currency dealers. In the future, more stringent regulatory requirements are expected to be introduced. "In the future, as long as one family is found to be shut down, at the same time, the future development of the situation will not rule out the possibility of further regulatory measures."
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