The Chinese Supreme Court has recently issued a statement for some cryptos. The court specifically focused on disputes arising from Bitcoin, Ethereum, USDT and other cryptocurrencies. It has published the draft rules on litigation related to cryptocurrencies. Here are the details…
China made a statement for three cryptocurrencies
The measures aim to prevent and control speculation risks in cryptocurrency trading. The court says that the trading of cryptos seriously disrupts the economic and financial order. He also stated that it poses a serious threat to the safety of people’s property. The “rules” specifically address Bitcoin, Ethereum, USDT and other cryptocurrencies. These refer to directives or instructions given by the Supreme Court to lower courts for the handling of disputes, in particular currency related disputes.
The court will take several moves when considering disputes involving cryptocurrencies. For example, it will look at national financial and industrial regulations to determine the validity of cryptocurrencies-related legal actions taken by the parties. It will also examine various regulations on public policy at different times.
The latest crypto developments in China
On the other hand, despite China’s ban on cryptocurrencies, there have been signs of trading activity showing that some of China’s 1.4 billion citizens are violating Beijing’s September 2021 ban when seeking alternatives to investments such as real estate and stocks. So where do the doubts come from that the Chinese appetite for tokens continues? There are citizens who say that crypto exchanges use payee profiles and crypto platforms. The information also comes from a variety of sources, including industry workers who are working around Beijing’s ban.
The US bankruptcy filings of FTX, which went bankrupt in November last year, show that Chinese users make up 8% of the exchange’s customers. Theoretically, while crypto trading is banned for the Chinese at home and abroad, it is difficult to enforce. By masking locations, users have the chance to circumvent exchanges’ attempts to block Chinese addresses.
Beijing has put cryptoassets under pressure due to concerns about money laundering, stock market crashes and the environmental impact of Bitcoin mining. Binance, OKX and FTX exchanges; China was once the world’s largest market for trade. It was serving risk-loving investors here. Compliance systems on exchanges and whether they filter Chinese passport holders are part of the compliance issue. As we reported as Kriptokoin.com, Binance, the largest crypto exchange, is one of the exchanges that stays away from China. The exchange said it does not operate or have any technology in mainland China.
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