Babbitt Exclusive | Shanghai launched a virtual currency exchange to investigate and rectify actions, what do people in the industry think?

Yesterday (November 15th), a screenshot of the document entitled "Notice on the Implementation of the Motivation of Virtual Currency Trading Sites" was madly transmitted on the Internet. It is reported that Caixin reporter confirmed the authenticity of this document to the central bank Shanghai headquarters.


As shown in the figure, the notice was jointly issued by the Shanghai Financial Stability Joint Office and the Inter-Gold Rehabilitation Office of the Shanghai Headquarters of the People's Bank of China. The main content is to require Shanghai District Remediation Office to conduct the following three types of virtual currency related activities before November 22nd.

The first is to organize virtual currency transactions in China; the second is to issue virtual currency in the form of “XX coins” and “XX chain” on the grounds of “blockchain application scenarios, etc., to raise funds or virtual currencies such as Bitcoin and Ethereum. The third is to provide publicity, drainage, agency trading and other services for ICO projects and virtual currency trading platforms registered overseas.

What is the origin of this remediation action? Will it indicate the remediation upgrade after 9.4? From the content of the document, how is it different from the previous rectification? Babbitt immediately interviewed several insiders.

Chen Tao, head of the Agricultural Bank of Shanghai Pudong Branch, said:

After General Secretary Xi Jinping’s speech, the industry has the saying that “ regular troops enter the mountain and must be embarrassed ”. This document is only the beginning , and it is expected. The digital currency itself is no problem, such as bitcoin. However, illegal fundraising (ICO, pyramid money, air currency, etc.), virtual currency trading, and speculation in the name of the blockchain in the name of digital currency are inevitably contrary to the general direction of the country's development blockchain. This notice was carried out by the Ministry of Public Security and other departments and can be understood as the same nature of cleaning up illegal p2p enterprises.

Hu Jie, a professor at Shanghai Institute of Advanced Finance at Shanghai Jiaotong University, said:

This notice is more like a preventive measure . In the context of General Secretary Xi Jinping’s speech on accelerating the development of blockchain technology and industrial innovation, on the one hand, he was afraid of misunderstanding, confusing blockchain technology with virtual currency; on the other hand, preventing people from using this thing, Everyone is engaged in air currency and funds. Compared with the 9.4 file, the background of the launch was different. At that time, the problem was more serious. Now these projects have gone abroad to sneak up, so this time it is mainly preventive.

Lawyer Lu Ping of Zhong Lun Law Firm stated:

This is not an action to upgrade and rectify. The trading and issuance of virtual currency in our country has always been strictly prohibited from the perspective of legal connection. Earlier, he talked about the blockchain in the 18th collective study of the Politburo, stressing that this is a technology. Although mentioned in the field of digital asset trading, it has nothing to do with the issuance of virtual currency. In addition, it is also clear that blockchain technology should be applied to areas that have been technically supported and in the areas of people's livelihood.

As a local document, there are no problems affecting other regions, but as far as I know, many places are strengthening control over virtual currency, especially in Jiangsu, Zhejiang and Guangdong. Shanghai is more representative, because in the first virtual currency inventory process, Shanghai's actions are more active, so this notice can be seen as a continuation of past policies and actions.

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