Reg­u­late: World over, crack­downs

China Daily (Latin America Weekly) - - Business -

in­clud­ing il­le­gal of­fer­ings, false in­for­ma­tion, fraud and pyra­mid schemes”, the PBOC sources were quoted as say­ing by Xinhua News Agency.

China had mes­sag­ing apps re­lated to cryp­tocur­ren­cies re­moved from on­line stores, while ad­min­is­tra­tive de­part­ments re­lated to in­dus­try and com­merce were asked to re­voke the busi­ness li­censes of com­pa­nies en­gaged in vir­tual cur­rency trans­ac­tions.

Such mea­sures are in line with a global trend. Gov­ern­ments and reg­u­la­tors the world over are look­ing to reg­u­late or rein in trad­ing in cryp­tocur­ren­cies.

For in­stance, in Jan­uary, the In­ter­na­tional Mone­tary Fund warned of risk from the soar­ing prices of dig­i­tal coins, and called on reg­u­la­tors around the world to co­or­di­nate on poli­cies.

The US Se­cu­ri­ties and Ex­change Com­mis­sion warned in­vestors about po­ten­tial risk re­lated to stocks of com­pa­nies that claim a re­la­tion­ship to, or en­gage­ment with, ICOs.

Sim­i­larly, the Bank of Eng­land de­nounced the “an­ar­chy” of cryp­tocur­ren­cies be­ing used for crim­i­nal ac­tiv­i­ties. The Daily Tele­graph re­ported that BoE Gov­er­nor Mark Car­ney said bit­coin was “a global spec­u­la­tive ma­nia” rather than a use­ful new in­ven­tion, and as­sured that reg­u­la­tion of bit­coin would be a topic for the G20 meet­ing this month.

But gov­ern­ment re­sponse to cryp­tocur­ren­cies has been var­ied. For in­stance, Ja­pan amended its law last year to le­gal­ize vir­tual cur­ren­cies like bit­coin as a pay­ment method.

Amid all this, like reg­u­la­tors, ex­perts have called for in­ter­na­tional co­op­er­a­tion on the reg­u­la­tion of dig­i­tal cur­ren­cies.

“Some coun­tries have in­cor­po­rated vir­tual cur­rency trans­ac­tions and ICOs into the le­gal su­per­vi­sion sys­tem. China can reach cross­bor­der co­op­er­a­tion with these coun­tries to pro­tect the le­git­i­mate in­ter­ests of fi­nan­cial con­sumers,” said Yang Dong, di­rec­tor of the Fi­nan­cial Tech­nol­ogy and In­ter­net Se­cu­rity Cen­ter, which is part of the Ren­min Uni­ver­sity of China in Bei­jing.

Yang’s view may be linked to the fact that the China mar­ket used to be dom­i­nant in the world of cryp­tocur­ren­cies, in terms of trans­ac­tion vol­umes, com­put­ing ca­pa­bil­ity and the de­vices used to “mine” dig­i­tal coins.

In Septem­ber last year, the

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