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Homepage / News November 17, 2017 298 views

China’s Central Television Warns of the Dangers of Cryptocurrency OTC Trade

China’s Central Tv Warns of the Dangers of Cryptocurrency OTC Trade

Regulation

Ever felt curious how Chinese trade cryptocurrency exchanges are closed? Final Saturday November 11, China’s Central Television (CCTV-13) aired a plan about bitcoin more than the counter trading in the nation.

Also Study:&nbspChina Monitors Booming OTC Bitcoin Industry Following Shutting Down Exchanges

OTC Bitcoin Commercials Clustering Wechat Groups

The plan reveals that advertisements about cryptocurrency OTC trading have been clustering WeChat groups like a virus over the previous month. The channel’s news reporter also interviews early bitcoin adopter Wang who demonstrates how easy it is to trade through OTC.

“It’s as simple as sending an e mail,” says Wang. He teaches the reporter to download a bitcoin wallet and sends her some bitcoin by scanning her QR code. Wang continues to demonstrate how to trade at OTC platforms like Localbitcoins.com.

No KYC Requirement Leaves Space for Illegal Transfer of Assets

According to CCTV’s broadcast, a lot of Chinese cryptocurrency OTC platforms do not ask for any KYC information. Users don’t have to register on some platforms to buy and sell with Wechat spend or Alipay, which leaves room for criminal activity.

“Bitcoin OTC trading is probably to serve as an underground bank for transfer of assets,” notes Yang Tao, assistant to the president of Institute of Finance and Banking of the Chinese Academy of Social Sciences.

National Committee of Specialists on the Net Financial Safety of Technology of China, a government-backed research group, told CCTV that BTC and CNY OTC trading pairs have enhanced from 5 percent to 20 % at two significant international platforms because the Chinese shut down crypto exchanges.

The Committee warns that bitcoin and altcoins lack inherent value and that their speculative nature could attract and mislead naive newcomers to the space.

Why Need to Cryptocurrency Trading Solutions Be Regulated in China?

These so-called virtual coins are not currencies. They don’t have legal tender status to be utilized as indicates of payment and unit of account in China primarily based on present laws we have. And they need to not be circulated in the nation

That’s what&nbspLi Dongrong, president of National Net Finance Association of China, had to say on the matter. He adds that evidences has shown that anonymous crypto trading provides a hassle-free tool for funds laundering and smuggling. At present, renminbi is the sole legal tender currency in China.

421 Forms of Scam Coins Around the World

In closing, CCTV quotes Secretary Basic of the Committee Wu Zhen in saying that they have inspected more than 421 scam coins globally that have no technical benefits to help a sustainable improvement.

Do you think China will take action to curb cryptocurrency OTC trading?&nbspLet us know in the comments beneath.


Pictures courtesy of Shutterstock, and CCTV-13


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Published at Fri, 17 Nov 2017 14:30:56 +0000

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