Beijing's commission of arbitration has recently released a statement on BTC's legitimate nature in the country.
The organization stated that there are discrepancies in the comprehension of BTC's legitimacy under the present law in the country, as shown by a broad extent of legal controversies and debates relating to BTC.
It has been said that the country's cryptocurrency regulatory strategies are mainly predicated on two statements, which are the "notification of averting BTC risks" issued in the year 2013 and the second statement on the "prevention of financing risks of token allocation."
The first statement explains that BTC can not be used as a legitimate exchange for goods and services. While the second statement states that BTC is a virtual commodity. It further explains that BTC is not recognized as a virtual legal tender in the country. Also, some activities relating to BTC are banned in the country, such as financial and non-financial institutions not being able to provide goods and services directly for the financing of token allocation.
However, insurance firms can involve tokens and digital assets in their range of liability services for insurance. In conclusion, the organization stated that the country did not ban activities relating to BTC as virtual commodities.
Source: News.bitcoin
