China Never Prohibited Bitcoin as Product, Beijing Arbitration Commission Discusses
The Beijing Arbitration Commission has actually published a post clarifying that bitcoin’& rsquo; s use as a product has actually never been prohibited in China. It explains that the Chinese authorities’ & rsquo; attitude towards controlling bitcoin revolves around three locations.
China Recognizes Bitcoin as Commodity
The very first is that bitcoin is not legal tender.
rdquo; The third aspect is that some bitcoin-related activities are forbidden by the state, such as “& ldquo; Token funding trading platforms will not engage in the exchange business between legal currency, tokens, and virtual currencies.” & rdquo; Another example is that monetary and non-bank payment institutions “& ldquo; shall not directly or indirectly provide service or products such as account opening, registration, trading, clearing, and settlement for token issuance financing.” & rdquo; However, insurance coverage services “& ldquo; may include tokens and ‘& lsquo; virtual currency & rsquo; into the scope of insurance liability,” & rdquo; Wang noted. The financial expert concluded: In summary, the state does not prohibit bitcoin’& rsquo; s activities as virtual commodities.
He clarified that the prohibition was for bitcoin’& rsquo; s use as legal tender and some specific activities, such as those mentioned above.
The Beijing Arbitration Commission released a short article on the legal nature of bitcoin in China on Thursday. The Beijing-based independent, non-profit organization offers services in arbitration, mediation, and other conflict resolution mechanisms.
The very first is that bitcoin is not legal tender. The second is that “& ldquo; Bitcoin is a virtual commodity.” & rdquo; Wang highlighted that China does not recognize bitcoin as “& ldquo; virtual currency, & rdquo; however it does & ldquo; as a virtual product.
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The short article was authored by economist Wang Jin, an arbitrator for the commission. “& ldquo; There are still differences in the understanding of the legal nature of bitcoin under the current regulatory system” & rdquo; in China, as evidenced by a wide variety of legal conflicts including bitcoin, he started.