The post-approval era: virtual coin wallets, how to operate in compliance?

Once upon a time, the impact of new domestic policies on international coin prices could be described as “a sneeze to the sky”.

The post-approval era: virtual coin wallets, how to operate in compliance?

On June 21, 2021, a message appeared on the official website of the People’s Bank of China, “The People’s Bank of China interviewed some banks and payment institutions on the issue of virtual currency trading speculation,” and the reporter’s old friend urged the draft, asking Sister Za to write some personal views urgently. I’m crying, in the end, who is the journalist, I’m just an amateur legal youngster. The first thing you need to do is to think about how the domestic virtual currency wallet industry can survive, and combine this with a “small cut” to talk about it.

I. The logic of governance of virtual coin speculation

Once upon a time, the impact of new domestic policies on international coin prices could be described as “a sneeze to the sky”. Now, after the exchange went to sea, ICO settled in Singapore, miners moved to Canada and other events, the domestic coin-related policies and regulatory winds on the international digital coin prices gradually slowed down. In the words of people in the cryptocurrency circle, they are used to it, “the wolf is coming” has been shouted N times, the withdrawal of the withdrawal of the withdrawal, the withdrawal of the can not go to the underground to continue.

This time, the central bank interviewed banks and payment institutions, also after the announcement of the three associations, the announcement of the banks, local red-headed documents, financial security policy, reiterated the strict attitude of the regulatory authorities on the issue of virtual currency “speculation”. However, Sara believes that there are several consensus worthy of attention.

(1) The legality of Chinese people holding virtual property has not changed.

(2) Virtual currency trading does bring problems such as capital flight and increased difficulty in anti-money laundering.

(3) Virtual coin speculation does affect the national financial management order and economic order.

The logic of regulatory governance is just like the classic shark and shark fin PSA: “No sale, no kill”. It is an effective way to manage the financial risks associated with the public from the transaction link. As long as the transaction “bridge” between fiat currency and virtual currency is disconnected, that is, the services of banks and payment institutions, the “incremental” domestic currency-related transactions will not be able to start. One inlet pipe, one outlet pipe, as long as the incremental volume is controlled first, the problem will have a chance to be solved. At the same time, the use of “organizing and leading pyramid schemes”, “helping the letter crime”, “illegal fund-raising crime”, “mining farm shutdown” and other multiple pressure will be used. “In the meantime, multiple pressures will be applied to block the path of new domestic players and “coin-making machines”, gradually compress the stock business, and reduce the activity of Chinese players in the exchange, in order to maintain financial security and economic order.

How do wallets survive?

No zuo, no die. For wallets, the most important thing is to survive, and from Sara’s observation, “bad money drives out good money” is the prevailing law of the wallet industry. The wild play, earn money; small guts, poor people. If it is said that in the first few years, countries have not seen the truth about virtual coins clearly, let the bullets fly for a while is the first reaction to treat new things, then, through the practice of these years has come to the conclusion of “to new technology, not virtual coin hype”. This year’s series of currency-related operations, but also shows a serious attitude, Sara believes that the previous currency-related crimes less used in the crime of illegal business, money laundering, and even foreign exchange crimes will be on the historical stage.

Under such conditions, what business can the wallet do in the future?

Sister Za’s personal views, only for readers to criticize and correct:.

1、Storage and circulation of non-financialized union chain points.

2、The preservation and display of NFT.

3, DCEP-related business docking.

4、Preservation and circulation of traditional virtual properties such as Q-coins.

5、Publicity and attraction of cultural and creative products (including fan economy).

6、Storage and bookkeeping of tax invoices based on blockchain technology.

7、Storage and conversion of passwords in supply chain, logistics and other industries.

At the same time, it is recommended that the wallet company conducts criminal compliance, paying attention to the following negative list.

  1. financial management functions, which shall not be opened to Chinese residents.
  2. shall not promote yields, historical returns, etc.
  3. no promotion of services with financial nature.
  4. overseas licensed companies, which may not promote financial services and products in China that are not approved by domestic regulation.
  5. purses claiming to serve global customers, please do not use RMB denomination or simplified Chinese for financial product descriptions
  6. do not provide services to guess the rise or fall of the price
  7. do not provide links to exchange diversions.
  8. do not provide coin price analysis strategy report.

If the speculation is not wrong, the future procuratorate to review the wallet company whether to file a public prosecution, perhaps also refer to the above points, please old friends to self-correct, to prevent the emergence of criminal risks, regret.

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