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Is the Chinese Crypto Ban Fake? Owning BTC and OTC Trading Are Allowed, Says Expert

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Fri, 05/24/2019 - 09:06
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Yuri Molchan
Chinese citizens are legally allowed to hold Bitcoin, no punishment from the government will follow
Is the Chinese Crypto Ban Fake? Owning BTC and OTC Trading Are Allowed, Says Expert
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Recently, Chinese media reported that the local community is allowed to own Bitcoin and holding it on crypto wallets does not constitute a crime in spite of the crypto ban.

Only ICOs are banned, a Chinese expert says

A legislation expert from the Bank of China, Sa Xiao, says that storing Bitcoin in China is absolutely legal.

As per the expert, since 2013 Bitcoin has been considered private property in China, protected by Chinese laws.

OTC crypto trading is also believed not to be a crime, says Sa Xiao. Chinese laws interpret it as two people exchanging their property, and the state cannot interfere with it.

However, it is different when it comes to merchants. Recent reports about Chinese giant Tencent say it is shutting down all merchant accounts on its WeChat messaging app (the most popular in China at the moment), which accepts payments in crypto.

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The crypto ban targets only scammers, the expert says

Sa Xiao has clarified that China’s ICO ban was introduced only to fight against scammers who lure money out of inexperienced investors.

However, non-P2P crypto trading may be interpreted as a crime in accordance with Article 225 of the Criminal Law of China: “Other illegal business operations that seriously disrupt market order”.

However, other experts warn that it is safer not to trade Bitcoin in China, even through P2P operations, since there is no law that clearly permits it.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.