Earlier today, Chinese media house, Jinse, announced that the General Principles of Civil Law will take effect on October 1st. This was a set of rules and regulations agreed upon earlier this year, which outlined the virtual property act. This ensured that virtual properties and assets are under the purview of legal protection.
Now, does this mean that Bitcoin, Ether and other cryptocurrencies come under virtual assets in the eyes of the Chinese government? Turns out it does. The publication reports that the Chinese government has referred to Bitcoin as virtual good in their investment warning reports. Furthermore, Professor Deng Jianpeng from the China Science and Technology Financial Law Research Association also confirmed that “Bitcoin can be classified as virtual assets.”
Hubei and OKCoin still in operation
Bitcoin News had reported earlier this month that China was cracking down on all crypto exchanges, with the exception of Hubei and OKCoin. These exchanges happen to still be in operation when the General Principles of Civil Law comes into effect. While they have been given an ultimatum of shutting down by the end of October, China is also expected to pass a regulation on cryptocurrencies.
This impending announcement and the operation of these two exchanges is indicative of Chinese regulation on cryptocurrencies on the whole.
Our take
During the initial FUD caused by the China announcement, the crypto community had been hoping that this would be in lieu of regulations. Regulation on cryptocurrencies greatly legitimises it in the eyes of the government, which only means more people will take to it. And as more people take to crypto, its value also increases.
There’s still a few more days to understand what these regulations will exactly be, but we believe that any sort of regulation will see multiple cryptocurrency values start to increase. Let’s wait and see.
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Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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