Currency Exchange in China

Approach to legal regulation of relations of cryptocurrency in China is still not developed. At the same time, the cryptocurrency is considered by the regulator in the quality of the product, and cryptocurrency exchanges must be registered with the Telecommunication Bureau of China

China is one of the fastest growing FINTECH-markets in the world. In addition, there is the majority of mining pools (for example, F2Pool, AntPool, BTCC, etc.). Every year a number of incorporated in China cryptocurrency business grows.

however, the approach to legal regulation of relations of cryptocurrency in China is still not developed. At the same time, the cryptocurrency is considered by the regulator as a commodity and cryptocurrency exchange (and other web sites related to digital currency) must be registered in the Telecommunications office (Telecommunications Bureau).

Taxation is carried out in accordance with the standard for goods rules: operations with bitcoin are subject to tax on profits (Corporate Tax), income tax (Individual Income Tax) and tax on capital gains (Capital Gains Tax), and its sale may be subject to value added tax (Value-added tax).

In 2014, the Deputy head of the people's Bank of China said that in the near future to accept Bitcoin a legitimate financial instrument is impossible. At the same time, he noted that the ban on crypto-currency transactions no. At the end of March 2014 the information appeared that the people's Bank strongly recommended that Chinese banks and payment systems until April 15 to close the accounts of fifteen Chinese web resources engaged in trade Bitcoin.

on 11 April 2014, the President of the people's Bank Governor Zhou Xiaochuan said people's Bank is not considering a ban of Bitcoin. Thus he defined Bitcoin as a kind of asset, not currency. However, in late April of that year a meeting was held of representatives of the National Bank, during which some payment systems and to major Chinese Bank (China Merchants Bank) has been subjected to criticism related to the fact that they did not stop to sell Bitcoin.

In January 2016, the unexpected was the news that people's Bank was held, during which discussed the possibility of launching its own cryptocurrency. At the end of June 2016, it became known that virtual property (includes digital currencies) may soon be recognized as a "basic human right" in China. The relevant definitions are contained in a new draft of the main provisions of the Civil code of the country.

Approach to legal regulation of relations of cryptocurrency in China is still not developed. At the same time, the cryptocurrency is considered by the regulator in the quality of the product, and cryptocurrency exchanges must be registered with the Telecommunication Bureau of China