PBOC States Bitcoin Cannot Be Circulated in the Market, Calls Bitcoin a “Fictitious” Currency

This line covering Yi Gang and the PBOC announcements alters the legal structure of Bitcoin more from the gray and more into the black:

From 163.com:

中国人民银行等五部委发文,要求防范比特币风险。通知明确表示比特币是一种特定的虚拟商品,不具有与货币等同的法律地位,不能且不应作为货币在市场上流通使用。

Translation: The People’s Bank of China has issued a statement requiring guard and wariness regarding Bitcoin’s risk. In a clear notification statement, Bitcoin is a type of particular fictitious and theoretical commodity, not one possessing the status of legal, and moreover cannot act as circulating currency in the market.

Notice that this has far more to do than just financial companies and banks, and explicitly mentions that Bitcoin cannot circulate as currency in the market in China. But vaguely named financial companies and banks are not the only entities affected here, as the statement went out to payment companies as well as financial companies:

《通知》要求金融机构、支付机构在日常工作中应当正确使用 货币概念,注重加强对社会公众货币知识的教育,将正确认识货币、正确看待虚拟商品和虚拟货币、理性投资、合理控制投资风险、维护自身财产安全等观念纳入金 融知识普及活动的内容,引导公众树立正确的货币观念和投资理念。

Translation: Notice: Requiring financial companies, payment companies and their normal operations should use the concept of currency, so that to pay attention to strengthening society’s knowledge and education of currency, so that there is a correct identification to what money is, a correct regard to fictitious commodities and fictitious currencies, a correct regard to reasonable investments, reasonable control over investment risk, to safeguard one’s wealth, to channel into popular knowledge , to guide the public to establish correct concepts of currency and correct concepts regarding investing.

Notice that the announcement directly named payment companies. The news going forth will be what will be defined as a payment company.

Squawkonomics will be diving more into this, and bring you news as it comes to let you know how to navigate your Bitcoin exposure business and investment amidst China’s increasing regulatory stance regarding Bitcoin.

 

 

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