China might be having a change of heart when it comes to cryptocurrency regulations, releasing a paper that supports a crypto activity licensing scheme. Published by the China Banking Regulatory Commission (CBRC), The Study of Development and Regulations on Distributed Ledger Accounts, Blockchain, and Digital Currency was written by researchers Li Wenhong and Jiang Zeshen.
The report states that crypto licensing applies not only to trading and ICOs, but any transaction that is linked to ‘distributed ledger accounts’. These should all be regarded as financial services, according to the report. ‘Therefore they must be put under relevant financial regulatory frameworks’.
China’s reluctance to introduce cryptocurrency regulations and legislation has left it a murky environment for traders. This report signifies a move towards a China that embraces the digital currency revolution, rather than being left behind.