Sa Xiao, Council Member at Bank of China Law Research Association, told the local media that despite the ban on cryptocurrency BTC storage and trading on peer-to-peer platforms is not considered a crime or illegal activity.
1/ “It is legal to own bitcoins in China” says Sa Xiao, Council Member at Bank of China Law Research Association, cited by The Beijing News. Besides, Xiao considers occasional exchange of bitcoins between individuals and individuals is legal
Source(in CN): https://t.co/lQRaBECcIC
— cnLedger (@cnLedger) 22 мая 2019 г.
According to the expert, China’s legal system forbids ICO but takes a different view on cryptocurrency possession.
Similarly, over-the-counter trading is also not considered a crime. The expert explains that the transfer of assets is a personal right of an owner. Xiao’s statements clarify the Chinese legal system.
For a few years, the Chinese government implements a strict policy aimed at the prohibition of crypto activity in the country.
According to a resource, currently, there are 461 lawsuits regarding the violation of the ban. And the tendency is only increasing.
Sa Xiao together with other lawyers agreed that according to the criminal law of the country, trading on exchanges falls under article 225, paragraph 3 of the Criminal Law, “Other illegal business operations that seriously disrupt market order”.
Nevertheless, there is no law regarding over-the-counter trading.
Until today, almost all arrests and prosecutions connected with cryptocurrencies in China have been the result of fraud by third parties.
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