Chinese Bitcoin exchanges urge US regulators to use caution

Tuesday 26 August 2014 14:14 CET | News

The CEOs of the Chinese BTCChina, Huobi and OKCoin Bitcoin exchanges have written a joint document addressed to US regulators in order to signal that proposed rules for the digital currency will have notable consequences on international business, reports.

The main focus falls upon the issuing of the BitLicense by US authorities, a licence which should concern those with significant connections to the region, the CEOs claim.

Moreover, the CEOs express fears that US regulators’ acts may affect global exchanges as the virtual currency is decentralised and that New York regulations can be adopted by other jurisdictions.

They also highlight issues regarding the proposed requirement that licensed firms need to perform enhanced customer checks on non-US residents, checks which should be related to whether the customer and the applicable licensee are from the same jurisdiction, and not just on whether the customer is a US person.

US regulators are analysing new rules to regulate Bitcoin and other virtual currencies. On July 17, 2014 New York States Department of Financial Services proposed issuing the BitLicense.”

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Keywords: China, US, regulators, exchange, regulations, joint document, digital currency, crypto-currency
Categories: Payments & Commerce
Countries: World
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