ARTICLE
7 June 2021
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China And Hong Kong Implement New Crypto Regulation, Iran Halts Mining

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BakerHostetler

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Recognized as one of the top firms for client service, BakerHostetler is a leading national law firm that helps clients around the world address their most complex and critical business and regulatory issues. With five core national practice groups — Business, Labor and Employment, Intellectual Property, Litigation, and Tax — the firm has more than 970 lawyers located in 14 offices coast to coast. BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice and an industry-leading business practice. The firm is also recognized internationally for its groundbreaking work recovering more than $13 billion in the Madoff Recovery Initiative, representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. Visit bakerlaw.com
Three major Chinese banking and finance associations recently issued a directive significantly limiting access to and protection for cryptocurrency in that country.
China Technology

Three major Chinese banking and finance associations recently issued a directive significantly limiting access to and protection for cryptocurrency in that country. According to a recent report, the restrictions prohibit banks from allowing their customers access to cryptocurrency trading or storage, and prohibit banks from providing insurance to cryptocurrency businesses or investments. The restrictions also reportedly prohibit web platforms from hosting cryptocurrency coin companies and running advertisements for cryptocurrency-related activities.

In Hong Kong, according to recent reports, the government has issued proposals to restrict cryptocurrency exchanges to professional investors, and to require that the exchanges be licensed by the city's market regulator. The current existing rules reportedly provide for an "opt-in" approach pursuant to which exchanges may apply to the Securities and Futures Commission, but they are not required to do so.

Citing power grid concerns, the president of Iran has issued a moratorium on all cryptocurrency mining in the country until late September, according to a recent report. As noted in the report, a combination of authorized and unauthorized miners are utilizing more than 2,000 megawatts of electricity, and the country is experiencing hydropower shortages as a result of an unusually dry spring this year.

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