Paypal bitcoin news china
Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units. Cryptocurrency is a digital payment system that doesn't rely on banks to verify transactions. Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions.
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Content:
- PayPal inches up on enabling crypto payments for shopping
- Paytm Payments Bank pulls the plug on crypto exchanges in India
- ‘PayPal for crypto’ wannabe Ramp raises $52.7M Series A round led by Balderton Capital
- PayPal expands crypto offering and bets on it becoming mainstream
- PayPal Co-Founder, Bitcoin Investor Thiel Says Bitcoin Could Be Chinese ‘Weapon’
- 10 Major Companies That Accept Bitcoin
PayPal inches up on enabling crypto payments for shopping
Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy. Cryptocurrency-related activities have received little tolerance from the Chinese government. Exchange platforms that traded cryptocurrencies or provided facilitation services were also ordered to be closed following the crackdown on ICO.
Many exchanges chose to relocate to jurisdictions that are more favorable to cryptocurrencies than China. However, due to the long-arm jurisdiction of the Chinese criminal laws, organizers and promoters of overseas ICO and exchanges may not be free from the jurisdiction of Chinese criminal laws, if those persons are Chinese citizens or if Chinese investors invested in overseas ICO or traded cryptocurrencies on overseas exchanges.
Interestingly, it is not illegal to hold Bitcoins and other cryptocurrencies or even to buy or sell them in China. The Chinese government also encourages the development and application of blockchain technology, but made it clear that blockchain technology must service the real economy. On September 4, , seven government agencies of China, i. The Notice banned all ICO in China and ordered that any organizations or individuals who had previously completed ICO to make arrangements such as return of token assets to investors to protect investor rights.
To understand the harsh attitude of the Chinese government towards ICO, we have to look at the big picture of China's economy and financial market. In the past 20 plus years, China has enjoyed high speed economic development, which, many believe, came at the cost of high leverage in the financial system and accumulation of financial risks.
In the past two years, control of financial risks and stabilization of the financial system has become the top priority of PBOC. Before ICO, internet platforms providing P2P loans and micro lending had been targeted by PBOC and other financial regulators and are still in the process of cleansing and rectification.
It is no surprise that ICO, due to the sheer increase both in numbers and in the amount of funds raised, as well as some socially chaotic events caused by ICO, received the death sentence from PBOC. In the Notice, ICO was described as a process by which fundraisers distribute digital tokens to investors who make financial contributions in the form of cryptocurrencies such as Bitcoin and Eethereum.
The Notice further pointed out: "By nature, it is an unauthorized and illegal public financing activity, which involves financial crimes such as illegal distribution of financial tokens, illegal issuance of securities and illegal fundraising, financial fraud and pyramid scheme.
Among the crimes mentioned in the Notice, "illegal fundraising", which generally means raising funds without government approval, is a crime that has been widely used in cracking down on undesirable financial activities as the scope of the crime can be interpreted very broadly. It should be noted that even ICO outside of China are not completely safe if they attracted Chinese investors.
According to Article 6 of the PRC Criminal Law, if any of the criminal activities or results of such activities occurred in China, the crime is deemed to have occurred in the territory of China. If the ICO involved financial crimes based on Chinese criminal law standards, the promotors or organizers of those ICO may potentially be subject to Chinese criminal liabilities if they are Chinese citizens.
Even if they are not Chinese citizens, if overseas ICO attracted Chinese investors, they may still potentially be subject to Chinese criminal liabilities. In contrast to ICO, the organizers sell mining equipment to investors initially, and the investors are awarded with tokens or points for their mining activities using the equipment. The Notice also targeted cryptocurrency exchanges and ordered that any so-called "fundraising and trading platforms" shall not:.
In the several months after the Notice, most of the cryptocurrency exchanges closed down their platforms in China but continued exchange business through platforms registered in foreign jurisdictions such as Japan, Hong Kong, Korea or other jurisdictions which seemed to be more favorable to the exchange business than China. They also made adjustments to their business models.
To avoid direct confrontation with Chinese monetary authorities, some exchanges no longer provided exchange services between fiat currency and cryptocurrencies. Investors may use fiat currency to buy this new token and then use this new token to buy cryptocurrency. Further, many exchanges launched peer-to-peer trading platforms that support direct transactions between investors without the exchange acting as a CCP.
On those platforms, one investor can buy cryptocurrencies from another investor and pay the seller via bank transfers, Alipay or Wechat pay[1]. Those modified business models are not entirely safe from the Chinese criminal law perspective.
Although major exchanges have been relocated overseas, they may still be subject to Chinese criminal liabilities due to the long-arm jurisdiction of the Chinese criminal laws.
If the founders or managers of an exchange are Chinese nationals, or they make decisions in China to operate the overseas exchange, or the investors are in China, if the exchange performs prohibited functions, Chinese justice authorities would still have jurisdiction over those persons. To further prevent Chinese investors from purchasing and trading cryptocurrencies on overseas exchanges, China has blocked internet access to the websites of some overseas exchanges from China.
According to Chinese laws, no person should use the internet to view information that violates Chinese laws and regulations. Those who access overseas exchanges via virtual private networks VPN's may potentially face risks if the exchanges contain prohibited information.
The sale or provision of VPN services by companies or individuals without telecom licenses issued by Chinese telecom authorities became illegal. It was reported that on January 2, , the Working Team Leading Risk Control and Rectification concerning Internet Finance, a special task force established under the State Council, issued notices to local governments requesting them to take measures to "guide" Bitcoin mining operators to exit from their respective regions.
Since then, major miners reportedly decreased or ceased their operations in China, once the largest mining base in the world, and moved to more favorable countries, similar to the move of the cryptocurrency exchanges.
In view of China's harsh attitude towards ICO, cryptocurrency exchanges and mining activities, some may assume that it would be illegal for Chinese to hold or trade Bitcoins or other cryptocurrencies.
This is not correct. No PRC law or regulation prohibits Chinese investors from holding cryptocurrencies or trading cryptocurrencies. This seems to be consistent with an early notice jointly issued by five Chinese government agencies led by PBOC back in , which defined Bitcoin as a special virtual commodity, but not a currency.
That notice also explicitly provides that Bitcoin does not have legal status as a currency and should not be circulated and used in the market as a currency. This should still be the position taken by PBOC as of today. Article of the General Rules of the Civil Law of China, which took effect on October 1, , provides that: "In case laws have provisions on the protection of data and internet virtual properties, such laws should be complied with.
Senior officials of PBOC have publicly encouraged the use of blockchain technology to improve the convenience, promptness and low cost of retail payments. It should be noted, however, that China's digital money would still be fully controlled by the central government, in contrast to the nongovernmental nature of Bitcoin. Many other banks have reportedly made experiments and even progress on the use of blockchain technology to improve their transaction systems.
Despite the ban on ICO and cryptocurrency exchanges, PBOC and other government agencies have consistently showed great enthusiasm towards the application of blockchain technology for the goal of modernizing China's financial systems and becoming a world leader in this new innovative technology. In recent years, various guidelines and papers issued by the government have endorsed blockchain technology and even placed blockchain technology in the same category of big data and artificial intelligence AI.
In the past twelve months, many local governments sponsored the formation of sizable investment funds to make investment in startups of blockchain technology and applications. However, the endorsement of blockchain technology is not without reservation. In the view of PBOC, blockchain technology and digital currency should be researched for the goal of better service to the real economy.
PBOC believes that blockchain technology can be developed without the use of tokens, which are believed to have been the roots of various social problems such as illegal fundraising and fraud. Given that cryptocurrency exchanges were banned in China, cryptocurrencies may only be traded in a peer-to-peer manner.
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We need this to enable us to match you with other users from the same organisation. It is also part of the information that we share to our content providers "Contributors" who contribute Content for free for your use. Learn More Accept. JunZeJun Law Offices. To print this article, all you need is to be registered or login on Mondaq. Background: To understand the harsh attitude of the Chinese government towards ICO, we have to look at the big picture of China's economy and financial market.
Exchanges China's Policy: The Notice also targeted cryptocurrency exchanges and ordered that any so-called "fundraising and trading platforms" shall not: - Offer exchange services between fiat currency, tokens and "virtual currencies"; - Buy or sell tokens or "virtual currencies", or buy or sell "virtual currencies" as a central counterparties CCP ; or - Provide price determination or information intermediary services for tokens or "virtual currencies".
Adjustments of Market Players: In the several months after the Notice, most of the cryptocurrency exchanges closed down their platforms in China but continued exchange business through platforms registered in foreign jurisdictions such as Japan, Hong Kong, Korea or other jurisdictions which seemed to be more favorable to the exchange business than China. Legality of Adjusted Business Models: Those modified business models are not entirely safe from the Chinese criminal law perspective.
Access to Overseas Exchanges: To further prevent Chinese investors from purchasing and trading cryptocurrencies on overseas exchanges, China has blocked internet access to the websites of some overseas exchanges from China. Mining Activities It was reported that on January 2, , the Working Team Leading Risk Control and Rectification concerning Internet Finance, a special task force established under the State Council, issued notices to local governments requesting them to take measures to "guide" Bitcoin mining operators to exit from their respective regions.
Legality of Holding and Trading Cryptocurrencies In view of China's harsh attitude towards ICO, cryptocurrency exchanges and mining activities, some may assume that it would be illegal for Chinese to hold or trade Bitcoins or other cryptocurrencies.
Transfer of Payments Using Blockchain Technology Senior officials of PBOC have publicly encouraged the use of blockchain technology to improve the convenience, promptness and low cost of retail payments. The Future of Blockchain in China Despite the ban on ICO and cryptocurrency exchanges, PBOC and other government agencies have consistently showed great enthusiasm towards the application of blockchain technology for the goal of modernizing China's financial systems and becoming a world leader in this new innovative technology.
Footnotes 1. Both of which are popular third party payment APPs in China. Official currency of China. Shen Wenhao. China Technology Fin Tech. The non-fungible tokens [hereinafter referred to as "NFTs" have been the talk of the town for a decade now.
They can have multiple use cases, given the ability to foster innovation and produce revenue for both creators and purchasers. Non-Fungible Tokens or NFT's are a part of the multi-billion-dollar industry that seems to be growing steadily. NFT's have been around in the market for a few years now but have been introduced Banks and other financial institutions have always been at the forefront of technology usage for their business purposes.
Blockchain Bites: Crypto crime at all time high! Crypto crime never lower! Whats going on?! This issue of Blockchain Bites brings you the latest legal, regulatory and project updates in blockchain and digital law. The increasing popularity of cryptocurrencies has no doubt sparked several debates around the world on their legality and efficacy. Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email.
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Paytm Payments Bank pulls the plug on crypto exchanges in India
Cryptocurrencies are never far from the headlines these days. While buying and selling cryptos is becoming increasingly mainstream, the opportunities to spend virtual currencies are somewhat limited in comparison due to its volatility. There are, however, a growing number of companies across a plethora of industries - from big tech to airlines - who are embracing cryptocurrencies, allowing customers to use them as an official method of payment for their goods and services. In November, Mastercard said it would allow partners on its network to enable their consumers to buy, sell and hold cryptocurrency using a digital wallet, as well as reward them with digital currencies under their loyalty programmes. The move would allow customers to earn and spend rewards in cryptocurrency rather than loyalty points.
‘PayPal for crypto’ wannabe Ramp raises $52.7M Series A round led by Balderton Capital
By Valerie Edwards For Dailymail. Thiel was participating in a virtual event called The Nixon Seminar that was hosted by the Richard Nixon Foundation when he doubled down on his criticism of Google before calling Apple the 'real problem'. Apple is the one that has real synergies with China. PayPal co-founder Peter Thiel pictured on Tuesday slammed Google and Apple for being too close to China and warned that bitcoin could be used as a 'Chinese financial weapon against the US'. The venture capitalist and conservative donor went on to say that he believes the US should 'keep putting a certain amount of pressure on Silicon Valley' and 'call companies like Google out on working on AI with Communist China not with US military'. And while he has invested in Bitcoin companies and considers it the 'digital equivalent of gold', Thiel said it could threaten the US dollar. His remarks seemed to represent a change of heart toward bitcoin as he urged the US to consider tighter regulations on cryptocurrencies. The price of Bitcoin rose almost per cent between December and February This chart depicts Bitcoin's price as of Thursday. Bitcoin accounts for more than 50 per cent of the entire cryptocurrency market capitalization.
PayPal expands crypto offering and bets on it becoming mainstream
A recent rally to all-time highs has sparked yet another wave of interest in Bitcoin BTC. Logically, much of the renewed emphasis is on Bitcoin as an investment. But BTC is also at its core a digital currency , and with every day that goes by, a growing number of businesses are allowing people to buy and sell goods and services with it. So for a moment, let's put on our consumer goggles and talk about how to spend your Bitcoin. Firstly, it's important to note that Bitcoin is often recognized as a "store of value" today, and thus it's more similar to gold than it is to the dollar, pound or yen, for example.
PayPal Co-Founder, Bitcoin Investor Thiel Says Bitcoin Could Be Chinese ‘Weapon’
Bitcoin, the rogue digital currency, is a fixture in the news. Last week, the formal launch of the very first Bitcoin exchange-traded fund raked in investment worth million dollars on just the first day alone. And Bitcoin prices hit an all-time high, crossing 66, dollars per Bitcoin. Crypto-mania is surging in Pakistan too: we reportedly rank third globally, behind India and Vietnam, in crypto adoption metrics. Binance, a cryptocurrency exchange, is reportedly one of our top downloaded apps.
10 Major Companies That Accept Bitcoin
Earn them with merchants, your credit cards, and with PayPal. All rewards programs are subject to applicable terms. PayPal, Inc. Learn more at paypal. PayPal Balance account required. Terms apply. Only available in the US and limited in certain states.
Tesla CEO Elon Musk implied in a Twitter exchange Sunday afternoon that the electric vehicle maker sold or may sell the rest of its bitcoin holdings, sending the price of the cryptocurrency down. A potential sale comes just days after Musk said the company planned to hold rather than sell the bitcoin it already has and intended to use it for transactions as soon as mining transitions to more sustainable energy. Musk later sparred with other Twitter users, calling the cryptocurrency "highly centralized" and pointing to a "Fortune" story about bitcoin mining in China. Musk has been a big supporter of cryptocurrencies, helping rally the prices of digital coins, including bitcoin, several times in the past year.
Libra is technically an association backed by 28 — now 27 — multinational companies and nonprofits, although Facebook takes the lead, and a Facebook subsidiary, Calibra, is intended to be the main way consumers will interact with the project. PayPal did not give a reason for leaving the project. Facebook says Libra is a 'global currency and financial infrastructure' - a digital asset built by Facebook and powered by a new Facebook-created version of blockchain, the encrypted technology used by bitcoin and other cryptocurrencies. The name Libra comes from the basic Roman measurement of weight. Facebook claims it wants to reach the 1. Facebook is likely to run into regulatory hurdles and antitrust concerns.
The price of Bitcoin slipped to its lowest levels in weeks on Monday amid news of further clampdowns on cryptocurrency in China. Among the groups urged not to use Bitcoin was Alipay -- an operator of the widely-used payment platform in China, as well as a handful of major Chinese banks. The news comes approximately a month after three state-backed financial institutions in China issued a separate joint statement warning about the dangers of cryptocurrencies due to their volatility and recommending that members do not conduct virtual currency-related business. Moreover, Reuters and other international news outlets reported over the weekend that authorities in the southwest province of Sichuan ordered Bitcoin mining projects to close , further stoking concerns of a Chinese crackdown on crypto. Bitcoin rallied sharply at the beginning of the year but has trended downward in recent weeks.
Sign up to have blog posts delivered straight to your inbox! The environmental impact of cryptocurrencies looms large among the many concerns voiced by sceptics. That Bitcoin damages the environment without countervailing benefits is, on the other hand, an allegation still widely believed even by many cryptocurrency fans.
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