The rectification of virtual currency has been upgraded again.
On September 24, ten departments including the People’s Bank of China issued new regulations to rectify the “virtual currency hype”, clarifying that virtual currency-related business activities are illegal financial activities. On the same day, the National Development and Reform Commission and other eleven departments jointly issued a document to rectify the “mining” of virtual currency, requiring that the investment and construction of new projects be strictly prohibited and the orderly exit of existing projects should be accelerated.
The virtual currency market has heard a decline. According to data from Bitcoin Homes, the price of Bitcoin has fallen by more than 4%, and the price of Ether has fallen by more than 7%. Xinghuo Mining Pool announced that in line with the latest industry regulatory policies, it will shut down mining pool services in mainland China. On the 25th, the virtual currency trading platform Huobi and the decentralized wallet TokenPocket also stopped providing some services to domestic users. Small trading platforms such as BHEX and BiONE announced their permanent closure.
Experts in the industry generally believe that the introduction of the new regulations once again demonstrates the high-pressure attitude of the regulatory authorities on the strong supervision of virtual currencies, and has clarified the “gray areas” such as pricing services and information intermediaries that have not been clearly specified before, and put an end to the illusions of speculators. , To prevent related financial risks.
Virtual currency related business is “illegal financial activity”
On September 24, the People’s Bank of China issued the “Notice on Further Preventing and Disposing of the Risks of Speculation in Virtual Currency Transactions” (hereinafter referred to as the “Notice”) on the official website of the People’s Bank of China.
The “Notice” proposes to build a multi-dimensional and multi-level risk prevention and disposal system, requiring financial institutions and non-bank payment institutions not to provide services for virtual currency-related business activities; strengthen the registration and advertising management of virtual currency-related market entities; strengthen Internet information content and access management related to virtual currency.
“Compared with previous policies and regulations, the “Notice” puts forward a new definition in terms of clarifying the essential attributes of virtual currency and related business activities.” said Xiao Sa, director of the Bank of China Law Research Institute. It is a virtual currency and is not protected by our laws; second, it is illegal to provide “pricing services” for virtual currencies and will be banned in the future; third, the “information intermediary” model of virtual currency transactions is no longer a gray area and has been classified as illegal ; Fourth, domestic personnel of overseas trading platforms cannot evade legal responsibility; fifth, contracts involving virtual currency investment transactions are invalid, on the grounds that they violate public order and good customs.
Ding Feipeng, director of Beijing Liantong Law Firm, said in an interview with a reporter from the Securities Daily that the “Notice” clarified the nature of virtual currency-related business activities for the first time. The combination model of OTC is no longer qualitatively controversial. The exchange business between virtual currencies or the provision of such exchange business for domestic users has been clearly defined as “illegal financial activities.”
Ding Feipeng further stated that before the issuance of the “Notice”, the definition of the nature of virtual currency in judicial practice was different. Some places considered it to be “virtual goods” and “private financial assets” and should be equally protected by the law; some believed that It is illegal to invest in virtual currency and is not protected by law. After the “Notice” is issued, the judiciary can declare the relevant civil legal acts invalid on the grounds of “violating public order and good customs,” and the losses caused by this shall be borne by the participants themselves.
Chen Xiaohua, a review expert on major industrial Internet blockchain projects of the Ministry of Industry and Information Technology, and chairman of the China Mobile Communications Federation’s Blockchain Professional Committee, told reporters that the “Notice” proposes to coordinate the coordination of ministries and commissions, strengthen territorial implementation, comprehensive monitoring and early warning, and establish information in various provinces. The sharing and rapid response mechanism are supervised, and the supervision is stronger, wider, and leaving no dead ends, which reflects the establishment of a normalized working mechanism and always maintains a high-pressure attack on virtual currency transactions.
Remediation of virtual currency “mining” is strictly prohibited to increase and properly handle the stock
On the same day, the National Development and Reform Commission and other eleven departments issued the “Notice on Regulating Virtual Currency “Mining” Activities” (hereinafter referred to as the “Notice”).
The “Notice” pointed out that, in accordance with the overall idea of ”strict monitoring, strict prevention of risks, prohibition of increments, and proper disposal of stocks”, we will give full play to the joint efforts of various regions and departments to strengthen the supervision of the entire upstream and downstream industry chain of virtual currency “mining” activities. A new virtual currency “mining” project was added to speed up the orderly exit of stock projects.
“Virtual currency’mining’ activities have high energy consumption and high power consumption, and its blind and disorderly development has adversely affected energy conservation and emission reduction.” Zheng Lei, chief economist of Baoxin Finance, told the “Securities Daily” reporter. As coal prices remain high and electricity consumption for daily life and production is affected by carbon emission assessments, all localities should speed up the withdrawal of virtual currency “mining” projects.
Zheng Xiangxiang, chairman of the Shenzhen Information Service Industry Blockchain Association, told a reporter from the Securities Daily that at present, virtual currency mining has caused excessive consumption of energy and increased carbon emissions, and the rapid replacement of mining machines will produce more E-waste disposal emissions run counter to the concept of my country’s carbon neutral development and are not conducive to achieving the dual-carbon goal.
Specifically, in terms of comprehensively sorting out and investigating virtual currency “mining” projects, the “Notice” proposes to sort out existing projects to ensure that local virtual currency “mining” investigations do not leave blanks; sort out and investigate new projects under construction; strengthen exceptions Power consumption monitoring and analysis.
In fact, in June of this year, local governments in Inner Mongolia, Sichuan, Qinghai, Xinjiang and other local governments took active actions to clear out virtual currency “mining” companies, whether they are mainly thermal power or hydropower “mining” companies have been cleaned up and rectified. In September, Hebei and Gansu once again deployed special rectification actions against virtual currency “mining” and transaction behavior. And proposed that follow-up will be normalized supervision, normalized to carry out the inspection of virtual currency mining machine “mining”, breach of contract and electricity theft, etc. work.
Xiao Sa said that the “Notice” clearly listed “mining” activities as eliminated industries and did not give any support. It is strictly prohibited to carry out virtual currency “mining” activities in the name of a data center. Require local governments not to provide financial and taxation support and financial services to “mining” companies, and crack down on “mining” companies from the source of funds.
Ding Feipeng said that “mining” companies are extremely sensitive to electricity prices, and the “Notice” clearly includes virtual currency “mining” projects in the “elimination category” of corporate electricity prices and implements price increases. The explicit prohibition of virtual currency “mining” projects from participating in the electricity market directly cut off the exit of some virtual currency “mining” projects.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/multi-departmental-efforts-to-rectify-cryptocurrency-hype-mining-activities-have-been-completely-cleaned-up/
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