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China State News calls for the regulation of Bitcoin exchanges

The media of the Chinese government, the Xinhua News Agency, has defended the recent decision of the regulatory authorities to ban the sale of tokens or ICOs and the voluntary closure of bitcoin exchanges.

05.Oct.17 4:54 AM
By Daria Zaytseva


China State News calls for the regulation of Bitcoin exchanges
Xinhua, critical of cryptocurrency exchange, said that today they had become a favorite among criminals around the world. It continued that exchanges are known to have "concocted pyramid schemes " and "engage in illegal activities" - criminal activity, "disguised as scientific and technological innovation."

These organizations must be met with "iron fist governance", according to an information agency, which also highly appreciated the authorities' "zero tolerance" for financial risks and illegal activities.

The article follows a statement of the authorities in early September, which prohibited the sale of blockchain tokens as a method of fundraising. The following month, a number of exchanges, referring to the statement, announced that they would voluntarily close their doors.

Xinhua claimed that even after the dispersal, there are still many "regulatory vacuums" that the authorities need to address, in part because of the global use of cryptocurrencies.

The solutions proposed by the agency, which is often considered the voice of the government, include the strengthening of existing regulations and the creation of a complete regulatory framework for exchange with specific requirements, such as restrictions on voluminous trade, identity verification and know-your-customer and anti-money laundry procedures.

Xinhua News Agency has previously written articles that collecting examples of fraud with Bitcoin.

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