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The Beijing Arbitration Commission has published an article clarifying that bitcoinâs use as a commodity has never been banned in China. It explains that the Chinese authoritiesâ attitude toward controlling bitcoin revolves around three areas.
China Recognizes Bitcoin as Commodity
The Beijing Arbitration Commission published an article on the legal nature of bitcoin in China on Thursday. The Beijing-based independent, non-profit organization offers services in arbitration, mediation, and other dispute resolution mechanisms.
The article was authored by economist Wang Jin, an arbitrator for the commission. âThere are still differences in the understanding of the legal nature of bitcoin under the current regulatory systemâ in China, as evidenced by a wide range of legal disputes involving bitcoin, he began.
Wang described that Chinaâs current âbitcoin control policiesâ are mainly based on two announcements. The first was the âNotice on Preventing Bitcoin Risks,â issued by the Peopleâs Bank of China (PBOC) and several other ministries on Dec. 3, 2013. The second was the âAnnouncement on Preventing Financing Risks of Token Issuance,â issued on Sept. 4, 2017, by seven ministries, including the PBOC. He explained that they reflect Chinaâs âcurrent attitude towards bitcoin control,â which revolves around three aspects.
The first is that bitcoin is not legal tender. The second is that âBitcoin is a virtual commodity.â Wang emphasized that China does not recognize bitcoin as âvirtual currency,â but it does âas a virtual commodity.â
The third aspect is that some bitcoin-related activities are prohibited by the state, such as âToken financing trading platforms shall not engage in the exchange business between legal currency, tokens, and virtual currencies.â Another example is that financial and non-bank payment institutions âshall not directly or indirectly provide products or services such as account opening, registration, trading, clearing, and settlement for token issuance financing.â However, insurance businesses âmay include tokens and âvirtual currencyâ into the scope of insurance liability,â Wang noted. The economist concluded:
In summary, the state does not prohibit bitcoinâs activities as virtual commodities.
He clarified that the prohibition was for bitcoinâs use as legal tender and some specific activities, such as those mentioned above.
What do you think about Chinaâs attitude toward bitcoin? Let us know in the comments section below.
The post China Never Banned Bitcoin as Commodity, Beijing Arbitration Commission Explains appeared first on Bitcoin News.
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