Beijing Watchdog Won't License Crypto Exchanges

The Beijing Financial Bureau won't tolerate cryptocurrencies because they cannot be used as legal digital currencies
13 January 2020   159

Huo Xuewen, director of the Beijing financial regulator, said that control over cryptocurrencies in the capital of China will be tightened, 8btc writes. The Beijing Financial Bureau has "zero tolerance" for the issue of cryptocurrencies, since cryptocurrencies cannot be used as legal means of payment in a digital form. Huo emphasized that only the People’s Bank of China can issue legal digital currencies.

According to the regulator, many virtual currency exchanges use the structure of a legal entity with variable equity participation to reduce risks. This structure assumes that the foreign legal education of the exchange is separate from the local one - the latter in this case is a subsidiary of the former in Chinese jurisdiction. Such a unit is not engaged in commercial activities in the main direction, but is responsible for business and finance in the domestic market in accordance with the agreement.

Huo said that the regulator is aware of this phenomenon, and the issue, sale and exchange of cryptocurrencies in China are considered illegal activities. At the same time, companies selling cryptocurrencies to Chinese citizens through financial pyramids or attracting investors to cryptocurrencies through various channels will be held accountable by law.

He also stressed that no company or trading platform is allowed to sell cryptocurrencies to local investors.

In addition to speculation, cryptocurrency has no real value. There is no need for a trading platform that has no real value but can only cause investors to be cheated and social instability.

 

Huo Xuewen

Director of the financial regulator in Beijing

 Earlier, Beijing police stopped the activity of the BISS cryptocurrency exchange, arresting dozens of suspects. Huo commented on this information, noting that the exchange was registered in a foreign jurisdiction and had an operating unit in China.

China does not allow cross-border cryptocurrency transactions. No institution can sell overseas cryptocurrency to Chinese, and no institution can provide the exchange of cryptocurrency to CNY. For this, we will closely monitor and crackdown on it.

 

Huo Xuewen

Director of the financial regulator in Beijing

 Asked if China could deal with licensing cryptocurrency exchanges in the future, Hao said he didn’t think so.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   295

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.