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China Payment and Clearing Association and other three departments jointly announced: to prevent the risk of speculation in virtual currency transactions, relevant institutions shall not carry out businesses related to virtual currency

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China Payment and Clearing Association, China Internet Finance Association and China Banking Association issued a joint announcement, clarifying that financial institutions and payment institutions are not allowed to carry out businesses related to virtua

Announcement of China Internet Finance Association, China Banking Association, China Payment and Clearing Association on Preventing Risks of Speculation in Virtual Currency Trading

Source: People's Bank of China

Recently, the price of virtual currency has soared and plummeted, and speculation activities of virtual currency transactions have rebounded, seriously infringing people's property safety and disrupting the normal order of economy and finance. In order to further the implementation of the departments of the People's Bank of China issued the notice on preventing the risks of currency "for the issue of financing risk prevention tokens, the announcement of such requirements, guard against risk virtual currency trading, the Chinese Internet financial association, the China banking association, China association of payment and settlement joint announcement concerning relevant matters as follows:

First, correctly understand the essential attributes of virtual currency and related business activities

Virtual currency is a kind of specific virtual goods, which is not issued by the monetary authority. It does not have the property of currency such as legal compensation and coercion. It is not a real currency, and should not and cannot be circulated and used in the market as currency.

Conducting exchange business between legal tender and virtual currency, trading virtual currency as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, issuing and financing tokens, trading derivatives of virtual currency and other related trading activities, violating relevant laws and regulations; They are also suspected of illegal fund-raising, illegal issuance of securities, illegal sale of tokens and other criminal activities.

II. Relevant institutions shall not carry out business related to virtual currency

Financial institutions, their institutions and other member units to strengthen the social responsibility, virtual currency shall not be used for the product and service pricing, the insurance business shall not accept insurance related to the virtual currency or virtual currency should be brought into the scope of insurance liability, shall not directly or indirectly to provide other services related to virtual currency, including but not limited to: Provide customers with virtual currency registration, trading, clearing, settlement and other services; Accept virtual currency or use virtual currency as a payment and settlement tool; Carry out the exchange service of virtual currency with RMB and foreign currencies; Carry out virtual currency storage, custody, mortgage and other businesses; Issuing financial products related to virtual currencies; Virtual currency as trust, fund and other investment targets.

Financial institutions, payment institutions and other member units should effectively strengthen the monitoring of virtual currency trading funds, rely on the self-discipline mechanism of the industry, strengthen risk information sharing, and improve the level of joint prevention and control of industrial risks; If any clue of violation of laws and regulations is found, measures such as restricting, suspending or terminating relevant transactions and services shall be taken in time according to the procedures and reported to the relevant departments; At the same time, we should actively use multi-channel and diversified means of access to strengthen customer publicity and warning education, and take the initiative to do a good job of warning risks related to virtual currency. Member units of Internet platform enterprises shall not provide online business sites, commercial display, marketing publicity, payment diversion and other services for virtual currency related business activities. They shall report to relevant departments in time if they find clues of relevant problems, and provide technical support and assistance for relevant investigation and investigation work.

Third, consumers should improve the awareness of risk prevention, beware of property and rights loss

Virtual currency has no real value support, its price is easy to be manipulated, and there are multiple risks such as false assets risk, business failure risk and investment speculation risk in related speculative trading activities. From the perspective of China's current judicial practice, virtual currency trading contracts are not protected by law, and the consequences and losses caused by investment transactions shall be borne by the parties concerned. Consumers should enhance risk awareness, establish a correct investment concept, do not participate in virtual currency trading speculation activities, beware of damage to personal property and rights and interests. Personal bank accounts should be cherished and not used for virtual currency account recharge and withdrawal, purchase and sale of related transaction recharge codes and transfer of related transaction funds, to prevent illegal use and disclosure of personal information.

Fourth, strengthen the self-discipline management of member units

Each member unit shall strictly implement the relevant national regulatory requirements, abide by the commitment of industry self-discipline, and firmly refrain from carrying out or participating in any business activities related to virtual currency. Three associations to strengthen self-discipline supervision of member units, found in violation of relevant regulations and industry self-discipline management requirements, will be in accordance with the relevant norms reported to the industry self-discipline, suspended member rights, disciplinary measures, such as cancel the membership and report to the administrative departments of finance, suspected of illegal crime, will be transferred to the public security organ about clew.

Internet Finance Association of China

China Banking Association

Payment and Clearing Association of China

May 18, 2021