China Banking, China Payment Clearing and other associations on the prevention of virtual currency trading speculation risk announcement

The Internet Finance Association of China, China Banking Association and China Payment Clearing Association jointly issued an announcement on preventing the risk of speculation in virtual currency transactions.

China Banking, China Payment Clearing and other associations on the prevention of virtual currency trading speculation risk announcement

Recently, the price of virtual currency has soared and plummeted, and the speculative activities of virtual currency trading have rebounded, seriously infringing on the safety of people’s property and disrupting the normal order of economy and finance. To further implement the “Notice on Preventing the Risk of Bitcoin” and “Announcement on Preventing the Risk of Token Issuance and Financing” issued by the People’s Bank of China and other departments, and to prevent the risk of speculation in virtual currency trading, the China Internet Finance Association, the China Banking Association and the China Payment Clearing Association jointly announce the following on related matters.

A. Correct understanding of the essential attributes of virtual currency and related business activities

Virtual currency is a specific virtual commodity, not issued by the monetary authorities, does not have the monetary attributes of legal tender and compulsory, is not real money, and should not and cannot be used as money in circulation in the market.

To carry out the exchange business between legal tender and virtual currency and virtual currency, to buy and sell virtual currency as a central counterparty, to provide information intermediary and pricing services for virtual currency transactions, token issuance financing and virtual currency derivatives trading and other related trading activities violate the relevant laws and regulations, and are suspected of illegal fund raising, illegal issuance of securities, illegal sale of tokens and coupons and other criminal activities.

Second, the relevant institutions shall not carry out business related to virtual currency

Financial institutions, payment institutions and other member units should effectively enhance social responsibility, shall not use virtual currency for product and service pricing, shall not underwrite insurance business related to virtual currency or include virtual currency in the scope of insurance liability, shall not directly or indirectly provide customers with other services related to virtual currency, including but not limited to: providing customers with virtual currency registration, trading, clearing, settlement and other services; accepting Virtual currencies or use virtual currencies as payment and settlement tools; carry out exchange services between virtual currencies and RMB and foreign currencies; carry out storage, custody, mortgage and other businesses of virtual currencies; issue financial products related to virtual currencies; use virtual currencies as the investment underlying of trusts, funds and other investments, etc.

Financial institutions, payment institutions and other member units should effectively strengthen the monitoring of virtual currency trading funds, rely on the industry self-regulatory mechanism, strengthen risk information sharing, and improve the level of joint prevention and control of industry risks; if illegal and irregular clues are found, measures such as restricting, suspending or terminating relevant transactions and services should be taken in a timely manner and reported to the relevant departments in accordance with procedures; at the same time, actively use multi-channel and diversified means of reaching out to strengthen customer Publicity and warning education, take the initiative to do a good job involving virtual currency risk tips.

Internet platform enterprise member units shall not provide network business premises, commercial display, marketing and publicity, paid diversion and other services for virtual currency-related business activities, the discovery of relevant clues should promptly report to the relevant departments, and provide technical support and assistance for the relevant investigation, detection work.

Third, consumers should raise awareness of risk prevention, beware of property and equity losses

Virtual currency without real value support, the price is very easy to be manipulated, related speculative trading activities there are false assets risk, business failure risk, investment speculation risk and other multiple risks. From the existing judicial practice in China, virtual currency trading contracts are not protected by law, and the consequences and losses caused by investment transactions are borne by the relevant parties.

Consumers should enhance risk awareness, establish the correct investment concept, do not participate in virtual currency trading speculation activities, beware of personal property and rights and interests damage. They should cherish their personal bank accounts and not use them for virtual currency account top-ups and withdrawals, purchase and sale of relevant transaction top-up codes and transfer of relevant transaction funds to prevent illegal use and leakage of personal information.

Fourth, strengthen the self-regulatory management of member units

The member units should strictly implement the relevant national regulatory requirements, abide by the industry’s self-regulatory commitments, and resolutely refrain from conducting or participating in any business activities related to virtual currencies. The three associations will strengthen the self-regulatory supervision of member units, found in violation of the relevant regulatory provisions and industry self-regulatory management requirements, will be in accordance with the relevant self-regulatory norms to take industry notification, suspension of membership rights, cancellation of membership and other disciplinary measures, and reported to the financial authorities, suspected of illegal crime, the relevant clues will be transferred to the public security organs.

China Internet Finance Association

China Banking Association

China Payment Clearing Association

May 18, 2021

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