Official: Notice on Further Preventing and Disposing of the Risk of Hype in Virtual Currency Trading

  • Issuing authority: Internet Information Office of the People’s Bank of China, the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology, the Ministry of Public Security, the General Administration of Market Supervision, China Banking Regulatory Commission, China Securities Regulatory Commission, Foreign Exchange Bureau
  • Document Number: Yinfa [2021] No. 237
  • Source: People’s Bank of China website
  • Subject classification: finance, finance, audit\currency (including foreign exchange)
  • Type of official document: Notification
  • Date of writing: September 15, 2021
  • Release Date: 2021

 

Notice of the People’s Bank of China Central Cyberspace Administration, the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Industry and Information Technology, the Ministry of Public Security, the General Administration of Market Supervision, the China Banking Regulatory Commission, the Securities Regulatory Commission, and the Foreign Exchange Bureau, on Further Preventing and Disposing of the Risks of Speculation in Virtual Currency Transactions
Yinfa [2021] No. 237

The people’s governments of all provinces, autonomous regions, and municipalities directly under the Central Government, and Xinjiang Production and Construction Corps:

Recently, virtual currency trading hype activities have risen, disrupting economic and financial order, breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes, and money laundering, and seriously endangering the safety of people’s property. In order to further prevent and deal with the risks of virtual currency trading speculation, and effectively maintain national security and social stability, in accordance with the “People’s Bank of China Law”, “The People’s Republic of China Commercial Bank Law”, “The Securities Law of the People’s Republic of China”, and “Network Security of the People’s Republic of China” The Law of the People’s Republic of China on Telecommunications, the Regulations on the Prevention and Treatment of Illegal Fund Raising, the Regulations on the Administration of Futures Trading, the Decision of the State Council on the Clean-up and Rectification of Various Trading Places to Practically Prevent Financial Risks, and the General Office of the State Council on the Clean-up and Rectification of Various Trading Places “Implementation Opinions” and other provisions, the relevant matters are now notified as follows:

1. Clarify the essential attributes of virtual currency and related business activities

(1) Virtual currency does not have the same legal status as legal currency. Virtual currencies such as Bitcoin , Ether , and TEDA have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed accounts or similar technologies, and exist in digital form. They are not legal and should not and cannot be used as currency in the market. Use on circulation.

(2) Virtual currency-related business activities are illegal financial activities. Carrying out legal currency and virtual currency exchange business, exchange business between virtual currencies, buying and selling virtual currencies as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, virtual currency derivatives transactions and other virtual currency related Business activities suspected of illegal sale of tokens and tickets, unauthorized public issuance of securities, illegal operation of futures business, illegal fund-raising and other illegal financial activities are strictly prohibited and resolutely banned in accordance with the law. Those who carry out related illegal financial activities constitute a crime shall be investigated for criminal responsibility in accordance with the law.

(3) The provision of services by overseas virtual currency exchanges to Chinese residents through the Internet is also an illegal financial activity. For domestic staff of relevant overseas virtual currency exchanges, as well as legal persons, unincorporated organizations and natural persons who know or should know that they are engaged in virtual currency-related businesses and still provide them with services such as marketing promotion, payment and settlement, technical support, etc., they shall be investigated in accordance with the law. responsibility.

(4) There are legal risks involved in virtual currency investment and trading activities. Any legal person, unincorporated organization, or natural person investing in virtual currency and related derivatives that violates public order and good customs will be invalid and the relevant civil legal acts shall be invalid, and the losses arising therefrom shall be borne by them; suspected of disrupting financial order or endangering financial security, the relevant departments shall be subject to law Investigate.

2. Establish and improve a working mechanism to deal with the risks of virtual currency trading hype

(5) Departmental coordination and linkage. The People’s Bank of China, together with the Central Cyberspace Administration, the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration of Market Supervision, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and foreign exchange bureaus, has established a work coordination mechanism to coordinate the resolution of major issues in the work. Issues, supervise and guide all regions to carry out their work according to unified deployment.

(6) Strengthen territorial implementation. The provincial people’s governments are generally responsible for preventing and disposing of risks related to virtual currency trading speculation within their administrative regions. The local financial regulatory authorities will take the lead, with the participation of branches of the financial regulatory department of the State Council and the competent authorities of cybersecurity and informatization, telecommunications, public security, and market supervision. Establish a normalized working mechanism, coordinate and mobilize resources, actively prevent and properly handle issues related to virtual currency trading speculation, and maintain economic and financial order and social harmony and stability.

3. Strengthen the risk monitoring and early warning of virtual currency trading speculation

(7) Comprehensive monitoring and early warning. Provincial people’s governments give full play to the role of local monitoring and early warning mechanisms, and combine online monitoring and offline investigation to improve the accuracy and efficiency of identifying and discovering virtual currency trading hype activities. The People’s Bank of China, the Central Cyberspace Administration of China and other departments continue to improve the technical means of encrypted asset monitoring, and realize the full-chain tracking and full-time information backup of virtual currency “mining”, transaction, and exchange. Financial management departments guide financial institutions and non-bank payment institutions to strengthen the monitoring of virtual currency transaction funds.

(8) Establish an information sharing and rapid response mechanism. Under the leadership of the provincial people’s governments, local financial regulatory authorities, together with branches of the financial management department of the State Council, cybersecurity and informatization departments, and public security agencies, strengthen the effective connection of online monitoring, offline planning, and fund monitoring, and establish virtual currency transaction hype information sharing And cross-validation mechanism, as well as a rapid response mechanism for early warning information transmission, verification, and disposal.

Fourth, build a multi-dimensional, multi-level risk prevention and disposal system

(9) Financial institutions and non-bank payment institutions shall not provide services for virtual currency-related business activities. Financial institutions and non-bank payment institutions shall not provide services such as account opening, fund transfer, clearing and settlement for virtual currency-related business activities, shall not include virtual currency in the scope of collateral, shall not carry out virtual currency-related insurance business or use virtual currency Currency is included in the scope of insurance liability, and clues about violations of laws and regulations should be reported to the relevant departments in a timely manner.

(10) Strengthen the management of Internet information content and access related to virtual currency. Internet companies are not allowed to provide services such as online business premises, commercial display, marketing promotion, and paid diversion for virtual currency-related business activities. If clues of violations of laws and regulations are found, they should promptly report to relevant departments, and provide technical support and assistance for related investigations and investigations. . According to the clues transferred by the financial management department, the competent authorities of network information and telecommunications shall promptly shut down Internet applications such as websites, mobile applications, and small programs that carry out virtual currency-related business activities in accordance with the law.

(11) Strengthen the registration and advertising management of market entities related to virtual currency. The market supervision department strengthens the registration management of market entities, and the registered names and business scope of enterprises and individual industrial and commercial households must not contain words or content such as “virtual currency”, “virtual assets”, “encrypted currencies” and “encrypted assets”. The market supervision department and the financial management department shall strengthen the supervision of related advertisements related to virtual currency in accordance with the law, and promptly investigate and deal with relevant illegal advertisements.

(12) Severely crack down on illegal financial activities related to virtual currencies. After discovering clues to illegal financial activities related to virtual currency, the local financial supervision department, together with the branches of the financial management department of the State Council and other relevant departments, promptly investigate and identify in accordance with the law, properly handle them, and seriously investigate the legal responsibilities of related legal persons, unincorporated organizations and natural persons for crimes. If it is, it shall be transferred to the judicial organ for investigation and punishment according to law.

(13) Severely crack down on criminal activities involving virtual currencies. The Ministry of Public Security deploys public security agencies across the country to continue to carry out in-depth “special operations against money laundering crimes,” “special operations against cross-border gambling,” and “card-breaking operations”, and severely crack down on illegal operations, financial fraud and other criminal activities in virtual currency-related business activities in accordance with the law. Criminal activities such as money laundering and gambling implemented by virtual currency, and criminal activities such as illegal fund-raising and pyramid schemes using virtual currency as a gimmick.

(14) Strengthen industry self-discipline management. China Internet Finance Association, China Payment and Clearing Association, and China Banking Association strengthen member management and policy publicity, advocate and urge member units to boycott illegal financial activities related to virtual currencies, and follow relevant self-discipline management to member units that violate regulatory policies and industry self-discipline rules Provide for punishment. Relying on various industry infrastructures to carry out virtual currency transaction speculation risk monitoring, and timely transfer of problem clues to relevant departments.

Five, strengthen organization and implementation

(15) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to responding to the risk of virtual currency trading speculation, strengthen organization and leadership, clarify work responsibilities, and form a long-term work mechanism of central coordination, territorial implementation, block integration, and joint responsibility, maintain a high-pressure situation, and dynamically monitor risks , Take effective measures to prevent and defuse risks, protect people’s property safety in accordance with the law, and spare no effort to maintain economic and financial order and social stability.

(16) Strengthen policy interpretation and publicity and education. All departments, regions and industry associations should make full use of various media and other communication channels to publicize the illegality and harmfulness of related business activities such as virtual currency speculation through legal policy interpretation, typical case analysis, investment risk education, etc. And its manifestations, etc., to enhance the public’s awareness of risk prevention.

Ministry of Industry and Information Technology, Supreme People’s Court, Supreme People’s Procuratorate,
Central Cyberspace Affairs Office of the
People ’s Bank of China

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