Since the inception of Bitcoin on 3rd January 2009, founded by Satoshi Nakamoto, it paved a new wave of digital currency all over the world. We all have been familiar with the use of traditional currencies for our daily purpose. But the advent of cryptocurrency posed a new challenge in becoming an alternate source of payment. The use of Bitcoin became a much-preferred form trading among the users and traders for businesses.
It benefitted users with individuality with the absence of middleman and interference of central authority like banks and government, or any other third party. If you are abreast of Bitcoin news today, then you must be remembering that Bitcoin was once banned by countries who doubted over its legality and suspicion for wrong reasons. In a country like China, it was too banned. But what if you come to know that the Bitcoin as a commodity was not banned by the latter country?
Well, it might seem surprising for you but it is true as per an article published by the Beijing Arbitration Commission. The article stated clarification on China, not banning the use of Bitcoin as a commodity. It has also indicated the attitude of the authorities from China for monitoring Bitcoin, scrolls around some specific areas.
Use Of Bitcoin As A Commodity In China
As has been said above, the article which was published by the Beijing Arbitration Commission described the legality of the use of Bitcoin in China. Services like dispute resolution methods, arbitration, and mediation are being provided by an independent and non-profit organization from Beijing. Authored by Wang Jin, an economist, the article emphasized the legality of Bitcoin under the Chinese regulatory system. He raised about Bitcoin involvement in the range of legal disputes.
The economist Wang made two announcements regarding the control policies of Bitcoin in China. The initial was ‘’Notice on Preventing Bitcoin Risks.’’ It was issued on 3rd December 2013 by various ministries and PBOC (People’s Bank of China). The other announcement was on Preventing Financing Risks of Issuing Token on 4th September 2017. According to Wave, they all reflected the current approach for controlling Bitcoin in China, involving three angles.
The first one reveals about Bitcoin, not being a legal tender. And the second angle states about the latter cryptocurrency as a virtual commodity. Wang has further defined Bitcoin, as not being seen as virtual currency by China, but refer to it as a virtual commodity. Coming on to the third angle, it stated the prohibition of activities that are linked with Bitcoin by the state. It does not allow the trading platforms to exchange business between virtual currencies, legal currency, and tokens. Also, no non-bank payment institutions should engage themselves in a direct or indirect offering of services and products including registration, trading, opening account, token issuance financing, and clearing.
So these were some of the reasons which state about why China never disapproved of the use of Bitcoin as a commodity. All the factors were being stated in an article published by the Beijing Arbitration Commission. Also, the three aspects described by the economist Wang Jin. Bitcoin amid all odds became a digital asset that has emerged as a substitute to fiat currencies. It has even generated a belief that if the fiat currencies fall, then all the focus will come on to cryptocurrency. By following Bitcoin educational news, you must be knowing that even though India has pulled off the ban from Bitcoin trading, still, there are countries that don’t consider cryptocurrencies to be a legal concept.