19 September, 2017
A task force on internet finance led by the People’s Bank of China (PBoC) is developing a plan to close China's virtual currency exchanges, the Financial Times has reported.
Chinese financial news site Caixin has reported that the draft rules aim to ban domestic trading platforms for the digital currencies, the Financial Times said.
Virtual currencies such as bitcoin and ether are based on blockchain distributed ledger technology, which can be likened to a type of database that, using cryptography, can be operated as a digital public ledger for recording information, such as the transfer of assets between two or more parties.
China's central bank banned all initial coin offerings (ICOs) last week, announcing that ICO fundraising must be stopped immediately and refunds paid to all investors in completed ICOs. Digital token financing and trading platforms cannot convert their currency into government-backed currencies, digital tokens can’t be used as currency on the market, and banks are forbidden from offering services to ICOs.
Singapore recently issued a warning to consumers on the potential risks of digital token and virtual currency-related investment schemes.
For further information, please contact:
Ian Laing, Partner, Pinsent Masons
ian.laing@pinsentmasons.com
