Shanghai investigates three types of virtual currency-related activities and immediately urges rectification and withdrawal once discovered

The Paper reporter Chen Yueshi

2019-11-15 20:52 Source: The Paper

On November 15, The Paper learned that under the leadership of the Shanghai Internet Finance Regulation Office, the Municipal Financial Stability Joint Office and the Shanghai Headquarters of the People's Bank of China jointly issued the "Notice on Conducting a Survey and Regulation of Virtual Currency Trading Venues" (hereinafter referred to as the "Notice") to conduct a survey and regulation of virtual currency exchanges within their jurisdiction.
The notice stated that recently, with the promotion of blockchain technology, virtual currency speculation has shown signs of rising. In order to prevent a resurgence, according to the relevant arrangements of the National Internet Finance Regulation Office, each district regulation office is requested to conduct a survey of the three virtual currency-related activities within its jurisdiction. The survey work must be completed before November 22.
Activities included in the scope of rectification include: organizing virtual currency transactions within the country; issuing virtual currencies in the form of "xx coins" and "xx chains" on the grounds of "landing of blockchain application scenarios" to raise funds or virtual currencies such as Bitcoin and Ethereum; providing publicity, traffic diversion, agency buying and selling and other services for ICO projects and virtual currency trading platforms registered overseas.
The "Notice" requires that once an Internet company is found to be engaged in the above-mentioned virtual currency-related activities, the rectification offices of various districts in Shanghai must immediately report it to the Shanghai Financial Stability Joint Office (Shanghai Local Financial Regulatory Bureau) and the Shanghai headquarters of the People's Bank of China, and urge the company to immediately rectify and withdraw.