The People’s Bank of China (CB) is studying the possibility of cryptocurrency legalization , consults with experts on this issue, Yury Gugnin, one of the founders of the MILE Unity Foundation, deputy chairman of the expert council under the State Duma on digital economy and blockchain technologies, told Prime agency.
“Here in China we met a man who heads the working group on the legalization of the cryptocurrency in the Central Bank, he also asked us to provide what format we have, how we see the legal field for the cryptocurrency, we all gave it to him, to adapt this global experience”- said Gougnin, who is in China for educational seminars on cryptocurrency and blockchain technology.
According to him, the Chinese government shows great interest in this issue, but is cautious. “Because they are very large, they need to do everything carefully, they are very expectant, they do not mind, because they understand that this is an investment from abroad, it is the entrance of Chinese companies to the international market, but they just want understand how to do it neatly” – said Gugnine.
He noted that at present the cryptocurrency in China is actually in an empty legislative space. “It’s not legal, it’s not illegal, it’s in the middle.” The only thing that is illegal, and I agree with that, is that you can not conduct stock exchange activities-currency exchange. “This is normal.” And the second point is that ICO can not be carried out. just so with people to collect money. It is prohibited specific activities that are objectively illegal in any country” – explained the expert.
According to him, the Chinese government understands that it is already impossible to ignore the cryptocurrency, but is thinking how to perfectly balance the risks. “They definitely go in the direction of legalization, they just want to take into account all the subtleties,” added Gugnin.
In September last year, the People’s Bank of China banned the initial placement of cryptocoins (ICO – Initial coin offering, attraction of investments in projects in the form of emissions and sales of new cryptocoins) due to possible financial risks. The Central Bank of China attributed ICO to the illegal kind of fundraising, which can be associated with financial scams and pyramids.