A cryptocurrency exchange in South Korea declared the establishment of its first legally accepted branch in China. The firm by now has obtained authorization to proceed with the operations.
Captivatingly, hodling Bitcoins and other cryptocurrencies, buying and selling them are not illegal in China. The government established that blockchain technology must be of service to the whole Chinese economy. It encourages applying and developing Blockchain technology.
The legally inclined position of bitcoin and other crypto varies significantly in different countries and is still undefined or changing in most of these countries. Bitcoin’s status as a commodity/money diverges as there are several regulations. Most countries do not make using bitcoin illegal. Countries have different notions about bitcoin, which makes some banned and restricted it, others allow it explicitly.
The situation around cryptocurrencies and China has been raging. Four years ago, amidst a massive market bull run, China banned some activities related to crypto like Initial Coin Offering. There was the banning of Local exchanges as well as trading operations cracked down.
Moreover, China is looking to adopt its forthcoming Central Bank Digital Currency (CBDC), the said digital yuan.
China policies pointed at cryptocurrency exchanges, fundraisers, and trading platforms must not Propose exchange facilities between virtual currencies, fiats, and others, must not buy or sell digital currencies as a counterpart, must not offer price determination for digital currencies.
As it stands, DBX aims at extending its operations to some other countries that include but are not limited to the United States and Singapore.
The information obtained from the exchange, the Chinese Federal authority first permits the branch opening three days to the end of 2020 by approving a short-term agreement. Though, the Chinese authorities accepted and agreed to the last corporate accreditation on February 05, 2021.