Why don't we just shut down the virtual currency exchange? In fact, there is not a single virtual currency exchange platform in China. They were cleaned up long ago after 2017. At present, the virtual currency trading platforms used by everyone, such as X an, X coin, x K and other trading platforms, are operated overseas, so we can only limit their development in China.
On September 4, 2017, the People's Bank of China, together with the Cyberspace Administration of China, the Ministry of Industry and Information Technology, the State Administration of Industry and Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the China Insurance Regulatory Commission and other seven ministries and commissions, issued the "Notice on Preventing the financing risks of token issuance", calling a halt to ICOs and shutting down all virtual token exchanges in China. Since then, there has been no virtual currency trading platform in China.
However, after these virtual currency trading platforms go overseas, they actually re-establish the legal subject status in some small overseas countries and re-establish companies. The bosses of these platforms have transferred all web management and transactions to the main companies in those countries. So to a certain extent, they operate legally in those countries or countries that don't ban virtual currency transactions. However, virtual currency transactions are banned in China, so their marketing and transaction management in China are illegal.
But we all know that now that we have entered the world of the Internet, management is very difficult. These virtual currency trading platforms are still secretly developing their own agents and promoting their own apps in China. This is something that the state is constantly attacking. But what's the best way to crack down on transactional software? APP promotion is not allowed, this promotion can have a variety of modes, in fact, it is difficult to eliminate. To some extent, the best way is to crack down on the channels through which money flows in and out. Transaction sites as long as the capital is stuck, so naturally can not survive in China.
Therefore, we can see that in recent months, the financial regulatory authorities and major banks have issued a number of announcements, for suspected virtual currency transactions of bank accounts, will be frozen cancellation and other ways to manage. Meanwhile, public security and economic investigation authorities have cracked down on so-called businesses that offer to exchange yuan for virtual currency on criminal charges of money laundering and illegal business operations. This is the snake hit on seven inches, right on the heart, complete cure.
Because all kinds of virtual token transactions involve two fundamental links that cannot be avoided. One is that domestic users need to use RMB and change it into virtual tokens. One is the need to convert virtual tokens back into yuan in the future, regardless of profit or loss. Although these exchanges are overseas, we can't go to the clear. But we can now domestic development, as long as those who provide exchange businesses and users can not convert the RENMINBI, then can not buy these virtual coins, naturally also controlled.
This move will know to pull the plug, is the real blow virtual currency exchange ruthless move.