China has officially allowed transactions with bitcoin in the status of a "virtual commodity"

In China, it is officially allowed to make transactions with bitcoin, but not as a digital asset.Mainthe coin is now analogous to digital goods in terms of music or visual content. At the same time, the positioning of bitcoin as an asset will be prosecuted as before.

China no longer bans bitcoin

In a document from the Beijing Arbitration Commissionit is said that bitcoin has officially received the status of a virtual commodity. This means that the coin is no longer analogous to fiat money. At the same time, new restrictions have appeared for the turnover of cryptocurrency. Now the seller will have to establish a stable cost of the goods and not change it within the fluctuations in the rate.

"The current law prohibits the circulation of digital assets on exchanges and the performance of any transactions with them.In fact, owners of bitcoin can only sell it privately, so they will have to rely solely on the good faith of buyers, especially given the state of the Chinese cryptocurrency industry.Otherwise, the user risks paying a huge fine for illegal turnoverIf necessary, the holder of the asset in such a situation cancontact lawyers, but here everything will depend onIf he carried out constant transactions for the sale and purchase of bitcoin, then the result of the proceedings may bebecome fines and even confiscation of digital property."

Last month, local media reported thatmany large Chinese banks do not intend to block the accounts of users who own bitcoins. The same goes for the cards on which funds came from cryptocurrency exchanges. The corresponding initiative was taken by China Merchants Bank, Agricultural Bank of China, Construction Bank of China and Industrial and Commercial Bank of China. So far, there has been no reaction to such statements from the PRC financial regulator.

China and blockchain

In early autumn last year, the People's Bank of Chinaannounced the desire to release its own stablecoin which will be pegged to the yuan. Now the coin is already being tested, in which major representatives of the financial market take part. At the same time, China's attitude towards cryptocurrencies remains ambiguous. Blockchain in China is in great demand, but digital assets continue to be banned.

It was previously reported that the influx of stablecoins on exchanges indicates strong foundations for the continuation of the Bitcoin rally.

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