Topic: [2017-10-04] China State News Calls for 'Iron Fist' Regulation of Bitcoin Exchan (Read 1745 times)

the Chinese government already does this






it would be very good to see these measures applied, the owners of the exchange should not be anonymous, they must be resposable people, some exchange not respect their clients, the client send a support ticket and the support does not respond the ticket

if someone urgently needs your money and exchange blocks the client's money, the customer is desperate and sends a ticket to support and the support ignores the client's ticket. cases like these are full in exchange

the authorities must periodically inspect each exchange

What a flashy title again.

I too am happy to see that something is being done to halt the massive growth of the ICO industry, but find it quite a sign of weakness to prohibit Chinese Bitcoin exchanges from offering their services locally.

I am however realistic enough to look through that, and have no doubt that exchanges (whether they are the already existing exchanges or new ones) will be back at some point ~ it's just the government setting up new laws.

I wouldn't even be surprised to see the government there end up launching its own exchanges for ultimate control, and thus show that current shutdown of exchanges is a way to eliminate competition ~ you never know with China.

The Chinese government's media arm, the Xinhua News Agency, has defended regulators' recent decision to outlaw token sales, or ICOs, and the voluntary closure of bitcoin exchanges that followed.

Heavily critical of cryptocurrency exchanges, Xinhua said they had become a favourite among criminals across the world in an article today. Exchanges, it continued, are known to have "concocted pyramid schemes" and "engaged in illegal activities" – criminal activity "disguised as scientific and technological innovation."

The solution? These entities must be met with "iron fist governance," according to the news agency, which also praised authorities' "zero tolerance" to the financial risks and illicit activities.

The article follows a statement by authorities in early September, which prohibited the sale of blockchain tokens as a method of fundraising. In the following month, a number of exchanges, citing the statement, announced they would voluntarily close their doors.

Xinhua argued that, even following the crackdown, there are still many "regulatory vacuums" that authorities need to address, in part because of the global use of cryptocurrencies.

Solutions suggested by the agency – which is often considered the voice of the government – include strengthening existing regulations and establishing a full regulatory framework for exchanges with specific requirements, such as a cap on large volume trading, ID verification, and know-your-customer and anti-money laundry procedures.

Xinhua News Agency has previously written articles collecting instances of bitcoin fraud.

https://www.coindesk.com/china-state-news-calls-for-iron-fist-regulation-of-bitcoin-exchanges/