Should Other Countries Learn the Cutting Down Regulatory Solutions on Bitcoin from China?
How to regulate bitcoin is one of the most important areas that currently should be researched in for regulatory authorities in various countries. A few days ago, Lead researcher Chen Gong, of nongovernmental think tank Anbound Consulting pointed out that, other nations in the world should learn some monitoring and cutting down regulatory solutions on bitcoin from China. Nowadays, regulatory authorities in China is using a “blunt knife to cut flesh”. That is a kind of a regulatory method of escalating compress bitcoin’s living space and actually, It is also the most effective way of regulation in this area.
Chen Gong said bitcoin has become a hot potato, a huge barrier for regulatory authorities all over the world. The biggest problem is: a total ban of bitcoin may impact the capital market. However, if just simply left it behind, risks may snowball and things may getting completely out of control in the end. The regulatory authorities of the United States, South Korea, Japan, Europe and other countries are clearly facing this dilemma.
According to Anbound think tank’s information tracking, so far, six countries’ regulatory authorities including China, Russia, Britain, South Korea, Israel, the EU have publicly “denounced” bitcoin.
In September 2017, China’s seven ministries issued an announcement , they defined ICO as a kind of illegal financial activity and banned all domestic cryptocurrency transactions. Subsequently, regulatory authorities announced the banned of virtual currency exchanges in mainland China, major Chinese cryptocurrency trading platforms stopt their RMB trading service after that. Recently, there is more bad news for Chinese digital assets trading platforms’ OTC activities.
All these regulatory policies came step by step become a big fishing net that can be used to control the “bitcoin fever”.
This month, South Korea also announced some confusion regulatory policies, indicated that they would ban domestic cryptocurrency trading which caused a major dip.
There has been increased regulatory pressure on bitcoin and other cryptocurrency across the board. If all the countries can co-operation in regulating bitcoin, that would be a chance for regulators to take control and that will also benefit the whole cryptocurrency market.