Chinese bitcoin exchanges ignore the ban on cryptocurrency transactions

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The Chinese state media channel Voice of China published a series of reports accusing the Chineze bitcoin exchanges and the organizers of ICO of continuing operations with the cryptocurrency, despite the ban on such activities by the government in 2017.

With the ignore of the official ban, companies working in the field of cryptocurrency, are striving to “get financial benefits due to the growing tendency of rising prices for bitcoins” and are engaged in organizing the interaction between the virtual and virtual currencies.

“Many Chinese crypto exchange markets create foreign websites and continue to provide digital currency exchange services to mainland China users through foreign companies,” was said by Voice of China.

Significant attention in the Voice of China reports is paid to the activities of the OKEx exchange. Thus, the publication accuses it of using shell companies to confuse the history of its operations, as well as in offering unlicensed securities.

“After the release of the national ban, the exchange OKCoin transferred all user data and transferred the digital currency to OKEx, which was established outside of China. However, according to one of the clients of the exchange, the company moved abroad “only nominally.” In fact, it is still managed from Beijing.”, says Voice of China.

Also, accusations were made against many Chinese ICO projects – their claims are reduced to a clear violation of government directives and financial laws of the country.

“They conduct their business through the illegal release and distribution of tokens, illegal distribution of securities and illegal fund-raising. All this happens in addition to financial fraud, the creation of financial pyramids and other illegal and criminal actions.”

The report is also cited by Dan Jianpeng, the professor at the Law School of the Central University who criticizes the prohibitive measures and advocates the dynamic and global nature of the cryptocurrency, as well as the flexible approach to regulation that would promote innovation.

“If we are thinking about the development of normative rules, an absolute prohibition should not exist. With fraud, it is necessary to fight, but it is not worth it to deprive private capital of opportunities for development, because this is real entrepreneurship.”, Jianpeng said.