The chief accountant of the State Administration of Foreign Exchange: the exchange and use of digital currency such as Libra must fully comply with the foreign exchange management framework.

On November 4th, Sun Tianqi, the chief accountant of the State Administration of Foreign Exchange, published an article on “Regulations on Digital Money and Cross-border Financial Services from a Cross-border Perspective.” The article talked about the two-point principle in the use of cross-border digital currency in China: First, digital currency, including Libra, can flow freely across borders, and the renminbi is not fully convertible, so we must treat these digital currencies as foreign currencies. Its exchange, use must fully comply with our foreign exchange management framework. Second, in the territory, it is necessary to insist that the legal currency is the local currency, and the domestic transaction pricing cannot be replaced by other currencies. Otherwise, it is forbidden.