News Regulation

Chinese bank regulator proposes crypto license

A working paper titled “The Study of Development and Regulations on Distributed Ledger Accounts, Blockchain and Digital Currency”, was published by the China Banking Regulatory Commission (CBRC) on Wednesday.

The paper summarizes a variety of legal efforts made by different jurisdictions to govern activities related to cryptocurrency derivative trading, as well as initial coin offerings (ICOs).

“Currently, any capital transaction that relates to distributed ledger accounts, blockchain, cryptocurrency and its derivatives, ICOs and exchange operations should all be regarded as financial services. Therefore they must be put under relevant financial regulatory frameworks so that they can operate legally with a license”, – the paper states.

In addition, the paper suggests a potential framework for crypto-related activities should not be limited to just ICOs and trading. Rather, it should apply to any service that deals with transactions “related to distributed ledger accounts.”