A new report has revealed that China may once again resume Bitcoin trading through licensed cryptocurrency exchanges that support anti-money laundering measures.
According to China’s state-owned news publication Xinhua, local government is considering the possibility of licensing and record-keeping cryptocurrency trades in a move that may lift the nationwide ban on cryptocurrency exchanges in the country.
According to Xinhua, Chinese government is concerned with criminal activity that may leverage cryptocurrency to perform anonymously, and that the nation might well implement a license program with strict Anti Money Laundering (AML) systems in place.
The publication reported that “…Virtual currencies have become the top choices of underground economies. We shall adopt ‘0-tolerance policies’ towards crimes hidden underneath and take measures such as record-keeping, licensing, AML processes, real-name, limiting large transactions.”
To execute a zero-tolerance policy on cryptocurrency crimes, the Chinese government would need to implement infrastructure wherein payments can be evaluated and the identities of cryptocurrency users can be disclosed.
Some industry pundits have speculated that China’s present ban on cryptocurrency exchanges is merely a temporary delay to introduce stricter record-keeping and licensing programs for exchanges operating within the country.
Though China’s decision to ban cryptocurrency exchanges saw a market correction that forced Bitcoin back to the $3000 USD mark, the nation’s strategy has opened proverbial doors for other marketplaces; just last month, Japan authorized eleven cryptocurrency exchanges while Bitcoin itself recovered to the $4000 USD range.
China’s cryptocurrency exchange ban also forced local traders to resort to over-the-counter markets and peer-to-peer platforms, resulting in a situation where the Yuan could be traded without the control nor involvement of government.
What are your thoughts? How do you feel licensed Chinese cryptocurrency exchanges might affect the market? Be sure to let us know your opinion in the comments below!