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.





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