Is the deadline for the Exchange to close the new currency circle and return the currency circle coming?
Source: Beijing Business Daily
The strongest regulatory storm is coming, and the currency circle industry chain is shaking. Since the central bank and other ten departments hit hard on the illegal business activities of virtual currency on September 24, as of September 26, the reporter of Beijing Business Daily has verified that several exchanges have taken action, Huo Coin has stopped the registration of new users in mainland China on the evening of September 24, and BHEX Global Station announced the permanent closure of platform services on the evening of September 25. In addition, some overseas exchanges have suspended marketing activities. However, on the other side of the suspension and retirement, there are still some exchanges open to domestic users, even against the wind to reward the new, and the rectification of the currency circle has a long way to go.
Exchange responds quickly
After the release of the ten departments' heavy regulatory notice, the virtual currency exchange quickly responded.
On the day when the regulatory notice was issued on September 24, a reporter from the Beijing Business Daily learned from an insider that the registration of new users in mainland China had been stopped at 23:30 on the same day. At present, only the registration of new users in Taiwan and Hong Kong was retained.
Then on September 25, BHEX Global Station announced that WWW would be permanently closed from now on The new user registration function and all asset recharge functions in all regions of the BHEX.COM platform only allow transactions and withdrawals. In addition, the opening function will be closed for contract transactions, the buying function will be closed for LETF transactions, and the borrowing function will be closed for leveraged transactions. The user can only close the contract position, sell the LETF assets and return the leveraged borrowing. On October 23, 2021, the platform will be completely closed, and then everyone can no longer log in to the platform website and app.
In response to the above news, the reporter of Beijing Business Daily conducted verification interviews with the corresponding exchanges. On September 26, the fire currency announcement said that this was mainly in response to the requirements of the local government's regulatory policies, and that it was planned to complete the clearance of existing users who were identified as mainland China by December 31, 2021.
The relevant person in charge of the BHEX platform responded to the Beijing Business Daily reporter that the platform is being orderly retired, and the subsequent decision to operate the Singapore licensed exchange is mainly to avoid legal problems in the future.
In the view of the industry, other currency circle exchanges may follow up the retirement behavior one after another except Huo Coin and BHEX. In this regard, the reporter of Beijing Business Daily asked OKEx, Yuan An, etc., and the relevant personnel of OKEx said that "no notice has been received for the time being", while Yuan An has not received any response as of the press release. In addition, the reporter also learned from a number of exchange practitioners that they have decided to suspend relevant business marketing activities, but they are still waiting to see whether to retire.
"The exchange does not want to be cleared and retired", a person in charge of the exchange told the Beijing Business Daily reporter, "At present, there are hundreds of large and small exchanges open to domestic users. Among them, some exchanges have many security accidents of various hackers and technologies, which is difficult to ensure the security of users' assets; In addition, the reserves of most exchanges are less than 30% of users' assets, and the platform basically relies on new users to recharge, so old users can withdraw cash. Once the platform is suddenly shut down, you can only run away, and even some platforms disappear directly after being shut down, and there is no evidence... "
There are still speculators going against the wind
Judging from the wording of this notice, the regulator has a firm attitude to crack down on virtual currency, and directly characterizes the business activities related to virtual currency as illegal financial activities. Virtual currencies such as Bitcoin, Ethercoin and TEDA are not legally reimbursable, and it is also illegal for domestic foreign currency exchanges to provide services to domestic residents.
From the perspective of the industry, from the harsh statements such as "all are strictly prohibited, and resolutely banned according to law", the virtual currency related industry is about to "die". After clarifying the gray areas, the Bitcoin era will completely end in China.
However, on the other side of regulatory overweight, the market still has undercurrent surging.
On the one hand, there are still institutions going against the wind under the closure tide. The reporter of Beijing Business Daily noticed that on September 24, the reporter of Beijing Business Daily logged in to Yuan'an and found that the exchange also launched a marketing activity of "KAVA and HARD trade competition, winning the $100000 prize", including exclusive benefits for new users, rewards for participating in transactions, etc.
In addition, the reporter of Beijing Business Daily found on the non small platform that money king exchange, Tbit exchange, Alpex exchange and other exchanges are still carrying out new or rebate activities. Among them, money king publicized that "800USDT will be sent immediately upon registration, and 70% of commission will be returned upon invitation", while Tbit claimed that "profit plus loss plus subsidy, and the highest return rate of the whole network".
The reporter of Beijing Business Daily interviewed the platform for the money security marketing behavior, but no response has been received as of press release. In addition, the reporter has not yet found the contact information for the money king exchange, Tbit exchange, Alpex exchange and other platforms.
On the other hand, there are still speculators trying to "seek wealth in danger". A reporter from Beijing Business Daily found that there are still some hard disk dealers calling for "mining" business in the WeChat circle of friends; There are also many people who use Baidu Post Bar and telemarketing to attract people, and even some coin speculators claim that "the subsequent price rebound", in order to encourage "new leeks" to enter the market.
"In the future, against the background of compliance, companies in the currency circle will likely focus on foreign businesses, but offline C2C virtual currency transactions are generally difficult to eliminate." Professor Pan Helin, Executive Dean of the Digital Economy Research Institute of Central South University of Economics and Law, pointed out in an interview with Beijing Business Daily that virtual currency transactions themselves have no credit guarantee and there is a risk of fraud, It is recommended that ordinary people participate cautiously without understanding. But he also said frankly that the current state's attitude towards virtual currency is clear, but it is not clear whether C2C transactions are fully prohibited and how to prohibit them.
However, Xiao Sa, a senior lawyer in the industry, pointed out that the "information intermediary" model of virtual currency transactions has come to an end, is no longer gray, and has been classified as illegal. However, Xiao Sa also mentioned that in view of the profit potential of the fluctuation of the currency price, the future virtual currency trading and financial management may also become invisible, forming a "shadow exchange".
The rectification of the currency circle has a long way to go. However, it can be predicted that this supervision will bring more clear expectations to the market, and the space for the existence of institutions and practitioners related to virtual currency will become narrower.
Supervision layer by layer
In view of the encirclement and suppression of the illegal business of virtual currency, China's supervision has increased at all levels. From the Notice on Preventing Bitcoin Risks issued by five departments in 2013, to the Notice on Preventing Token Issuance Financing Risks issued by seven departments in 2017, to the Notice on Further Preventing and Handling the Speculation Risks of Virtual Currency Transactions issued by ten departments this time. In the industry's view, the clarification of the "gray zone" has further broken the illusion of participants and speculators.
"The new regulation once again shows the attitude of the regulatory authority, and clarifies the gray areas that have not been clear in the market for a period of time." Xiao Sa pointed out that the subsequent legal currency and virtual currency exchange business, mutual exchange business between virtual currencies, information intermediary business of virtual currency transactions, business of pricing virtual currency transactions, ICO, DeFi Publicity media for virtual currency transactions, third-party payment companies providing payment and settlement services for virtual currency related businesses, blockchain technology companies providing technical support for virtual currency businesses, and businesses called overseas exchanges actually serving domestic customers will all be banned or even suspected of crimes.
After the strong supervision, in Pan Helin's view, the domestic currency circle will basically end, and the global virtual currency bubble may also be near the end. He suggested that for individual participants, we should know that current domestic virtual currency transactions, especially C2C transactions, are losing credit and legal protection; In addition, the agency also needs to adjust its business content according to regulations.
At present, virtual currency service institutions are extended to various business forms such as customer diversion, brand promotion, user operation, transaction transfer, etc. An industry insider pointed out that it is recommended that relevant institutions close domestic illegal businesses in a timely manner, and then focus on the R&D and application of blockchain technology. Beijing Business Daily reporter Liu Sihong
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