China Round-Up: Permissive Regulations Advocated, 3 Million Chinese HODLers, Xiaolai Recording Leaks

In recent Chinese cryptocurrency news: a prominent scholar has advocated that China adopt a permissive regulatory apparatus, drawing influence from Japanese and U.S. legislation. Research conducted by the International Monetary Institute at Renmin University of China has estimated that the number of Chinese bitcoin investors exceeds 3 million, and an audio recording of famed bitcoin millionaire, Li Xiaolai, giving a scathing appraisal of several leading altcoins has been leaked.

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Chinese Scholar Advocates Permissive Regulatory Framework

The vice president of the Internet Finance Law Research Institute of the Beijing Law Society and professor of finance at the China University of Political Science and Law, Hu Jiye, recently advocated that China develop a permissive, western-styled regulatory apparatus pertaining to cryptocurrencies.

During a recent interview with Chinese media outlet, Dayqkl, Mr. Jiye praised the regulatory efforts of Thailand and the United States, and described Japan’s current legislative apparatus as the most advanced globally.

Of recent Thai regulations, Mr. Jiye stated “In my opinion, the Thai government is taking a rather proactive approach towards regulating the field of cryptocurrencies. Relevant legislation reflects the combination of prudential supervision and innovative promotion. If a digital currency tends to be used in an indirect financing market, it is more likely to be defined as a currency; and if a digital currency is more used in the direct financing market, its securities attributes are stronger.” Mr. Jiye also expressed reverence for the Japanese regulatory regime for activities related to virtual currencies, describing such as the most advanced globally.

Ultimately, Mr. Jiye advocated that China’s regulatory institutions adopt a permissive regulatory apparatus drawing upon the achievements of the aforementioned jurisdictions, proposing the development of unified regulations developed by China’s central bank, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission. “We should gradually build a mature legal system for blockchain finance and digital currency regulation and I believe blockchain finance and digital currency industry have great development potential in China,” he stated.

Number of Chinese HODLers Estimated to be 3 Million

According to Chinatimes, Li Honghan, a research at the International Monetary Institute of Renmin University of China, recently discussed the current state of cryptocurrency in China whilst speaking at the “New Financial Trends and 2018 Financial Technology Summit” in Beijing.

Despite China’s prohibitive policies regarding cryptocurrency exchanges and initial coin offerings, Mr. Honghan estimates that more than three million Chinese citizens presently own bitcoin. With China’s current population estimated to be nearly 1.38 billion, Mr. Honghan’s estimates would suggest that 0.2174% of Chinese citizens own bitcoin.

Mr. Honghan also predicted that distributed ledger technology will revolutionize the copyright, financial data, and securitization industries in China.

Recording of Li Xiaolai Offering Scathing Appraisal of Several Leading Altcoins Leaks

An audio recording of Li Xiaolai, a man described by South China Morning Post as “China’s most high profile bitcoin tycoon,” has been leaked. In the recording, the bitcoin millionaire gives a critical assessment of China’s cryptocurrency sector, describing many of the industry’s leaders as “cheaters.” The Bitfund founder also criticizes a number of leading cryptocurrencies by market capitalization and trade volume – particularly Qtum (of which he was involved with promotion), Neo, and Litecoin.

Mr. Xiaolai asserts that very little money can be made in a bear market, arguing that prominent crypto figures should seek to amass a large social following during cryptocurrency’s winter seasons – and seek to capitalize upon such during bull markets.

The Bitfund founder also describes retail investors as “leaks” – a derogatory term referring to inexperienced traders who are “harvested” by experienced investors with deep pockets.

Do you think that China will eventually move towards adopting a permissive regulatory apparatus regarding cryptocurrencies? Share your thoughts in the comments section below!

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