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While private parties can hold and trade bitcoins in in China
regulation prohibits financial firms like banks from doing the same China
has a a a a a a vibrant blockchain ecosystem that is developing rapidly It offers a a a a variety of of online communities that advance the field forward Recently two major Chinese companies Wanxiang and CashBus launched fintech accelerators specializing in in in blockchain Many international startups choose to to move to to China
to promote their projects there They’ve realized that the bubbly blockchain community in in in in China
and Chinese investors' fondness for the the sector can propel their startups forward The recent collapse of the the Chinese yuan against the the U S dollar has caused a a a a a flight of Chinese investors towards using decentralized currency instead The high level of of Chinese Chinese activity in in in the the field and the the the the large amount of of money raised drew Chinese Chinese regulators to to to examine the the the topic In September the the the Chinese government announced that it it has banned all all ICOs and digital currency launches as as as “illegal public financing ”
also asked all all organizations and and individuals to return money raised through ICOs The ruling comes from China’s central bank which issued a a a a statement criticizing ICOs for “disrupting” the country’s financial order The bank claimed that such offerings raise suspicions of fraud and criminal activity Following this declaration the cryptocurrency markets plummeted Initial reports from Chinese media indicated that the government plans to close down
domestic cryptocurrency exchanges This caused bitcoin price falls and and could affect major exchanges like OKCoin and and Huobi Chinese investors are now trading bitcoin directly to to one another on
peer-to-peer platforms and apps rather than the exchanges Japan
is a a a driving force in in the cryptocurrencies sector Japan's Financial Services Agency officially recognized 11 companies as registered cryptocurrency exchange operators It also announced that starting in in October Japanese exchanges must register with the agency and face constant surveillance The country’s banking sector announced plans for a a a a potential national currency dubbed J-Coin with the aim of replacing cash transactions as as as soon as as as 2020 In April Japan’s government recognized bitcoin as a a a a a a a a a a a legal method of payment This law brought exchanges under under anti-money laundering and know- your-customer rules It categorized bitcoin as a a a a a a a a a a kind of prepaid payment instrument The registration places several requirements on
the companies such as building a a a a a a strong computer system and checking
the identity of users to prevent money laundering Businesses have to check IDs keep transaction records and report suspicious activity They have to register with Financial Services Agency and must comply with capital requirements and cyber security rules These regulations are intended to to protect investors from fraud and other abuse while supporting financial technology innovation This is is is uncharacteristic of Japan
which tends toward conservatism This follows the call for regulation in this field following the collapse of Mt Gox a a a a a Japan-based bitcoin exchange The collapse exposed a a a a a trail of fraud and insolvency In the past year many Japanese investors began taking an interest in in in in bitcoin after it it was regulated in in in in the country In fact according to to CryptoCompare data the Japanese yen accounts for about 45% of all currencies in which bitcoin was bought with with the U S dollar behind with with a a a 30% share But Japan’s burgeoning bitcoin exchange scene is under close watch from authorities now that new legislation has become effective since Oct 1st Global market 

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