Chinese Bitcoin Exchanges Face Stricter Regulation and Licensure

Bitcoin Exchanges May be Required to Procure a License
Last week new.Bitcoin.com reported on rumors of China banning bitcoin, while cryptocurrency markets tumbled due to the negative news. Many reports from mainstream media detailed that the digital currency was deemed ‘illegal’ in China, even though there was no confirmation of this from regulatory officials. Bitcoin proponents also saw tweets from Litecoin creator, Charlie Lee, stating that China “finally banned bitcoin exchanges,” but the tweet was later deleted.
If a bitcoin exchange operates inside U.S. without a license for years and later is asked to stop operating. Is the U.S banning bitcoin?
So-Called “Currency” Trading Platforms Are Not Legally Established
Following the rumors and hearsay, China’s National Internet Finance Association (NIFA) announced that exchanges dealing with cryptocurrency and ICOs had received many warnings in the past. NIFA states that any exchange operating in China currently has “no legal” authority to operate a virtual currency business at the moment. “So-called “currency” trading platforms in China are not legally established,” reveals NIFA’s statement on September 13. China’s regional media sources also confirm that exchanges will face stricter regulatory scrutiny, but claim that bitcoin is not banned nationwide. According to the reports, the next step will be strengthening cryptocurrency exchange supervision while also emphasizing that ICOs are still forbidden. One report explains regulators are merely “removing fraudulent projects without actual content.” However, even though some local reports state bitcoin exchanges will face more regulatory challenges they still may have to cease operations in the meantime.The Possibility of Cryptocurrency Exchanges Shutting Down is Still There

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charlie lee China Chinese Exchanges Cryptocurrencies Economy ICOs illegal Jihan Wu licenses N-Featured NIFA Regulation
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