Mixed feelings: China censures bitcoin while Hong Kong embraces it
By Scott Thiel, Heng Loong Cheong and Joel Davis
Last December, bitcoin prices plummeted by nearly half, after Chinese authorities banned all financial institutions and payment processor companies in China from engaging in bitcoin-related business, denominating prices in bitcoins and providing bitcoin trading, settlement, clearing or other linked financial products and services. The People’s Bank of China (PBC) has not discussed its stance on bitcoins since the prohibitive announcement.
Being the most widely circulated cryptocurrency since its invention in 2009, an increasing number of users are attracted to the bitcoin network as it allows funds to be transferred from one party to another via the internet in minutes, bypassing any governmental authorities or financial intermediaries such as banks to save transaction time and costs. The bitcoin network is essentially a decentralised payment platform as computers on the network settle transactions among users and act as clearing houses on their own.
China has a planned and highly controlled economy. The ability to circumvent capital movement regulations may be one of the reasons for the bitcoin ban. In other jurisdictions, governments are mindful of the consumer protection issues posed by bitcoins and have expressed concerns that bitcoins are difficult to trace and therefore provide a potential platform for money laundering and illegal fundraising…
Click on the link below to read the rest of the DLA Piper briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Ministry of Finance and the State Administration of Taxation jointly issued the Circular confirming continuance of the preferential income tax treatment for ATSE for 1 January 2014 to the end of 2018.
High Court restricts common law duty of care where hospitals/ doctors have statutory obligation to discharge from involuntary detention
This case provides some clear guidance on how the statutory obligations on doctors and hospitals to care for mentally ill persons in the ‘least restrictive’ manner relate to, and can limit, a duty of care.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.