Review of Important Events in Cryptocurrency Regulation in Mainland China in 2024

December: The Central Bank Releases the "2024 China Financial Stability Report"

The report first mentions the latest developments in global Crypto Assets and related legislation, focusing on the recovery of the Crypto Assets market and global trends. It elaborates on Hong Kong's practices in the Crypto Assets field and frequently references concerns regarding global stablecoins, providing an objective review of various countries' legislative practices in Crypto Assets regulation.

In the same month, users discovered that a payment platform's homepage featured an advertisement for a Crypto Assets fund. The fund promoted itself under the banner of "Global Investment, starting from 10 yuan," allowing investments in specific ETFs related to encryption assets, with a daily purchase limit of 1000 yuan per person.

November: Senior officials dismissed for involvement in Crypto Assets

A senior official from a regulatory agency has been expelled from the party and public office due to serious violations of discipline and law, and has been handed over to the judicial authorities for processing. The official abused his power for personal gain, engaging in power-for-profit transactions using virtual currency, involving multiple disciplinary violations. As one of the pioneers of central bank digital currency, he was involved in research on financial technology and Crypto Assets.

In the same month, the Shanghai High Court published an article stating that individuals holding virtual currencies do not violate the law. The article pointed out that although virtual currencies possess property attributes, their related business activities are subject to strict restrictions, and efforts to combat virtual currency trading speculation continue.

October: The first blockchain event collaboratively launched between the mainland and Hong Kong.

The 2024 Web3.0 Innovation Competition has launched in the Xuhui District of Shanghai, marking the first blockchain event that collaborates between the mainland and Hong Kong. The competition focuses on key technologies such as blockchain and artificial intelligence, promoting deep cooperation between Shanghai and Hong Kong in the field of innovation, and driving technological innovation and industrial ecosystem development in Web3.0.

September: Call for Regulation of Virtual Currency Judicial Disposal

An article published in the China Court Newspaper pointed out that the judicial disposal of virtual currencies faces challenges such as ownership identification, value assessment, and legal monetization. The article suggests the introduction of comprehensive guidelines to clarify the legal status, compliance requirements, and disposal procedures of virtual currencies, and emphasizes the importance of cross-border regulatory cooperation.

In the same month, the former Vice Minister of Finance emphasized at a forum that the digital economy is key to global development and that Crypto Assets are crucial to the digital economy. He called for China to face the issues head-on and actively participate in the global development of digital currency.

August: Judicial Interpretation of Money Laundering Criminal Cases Involving Virtual Assets

The Supreme People's Court and the Supreme People's Procuratorate issued judicial interpretations, clearly incorporating "virtual assets" transactions into money laundering methods. It is stipulated that transferring or converting criminal proceeds and their gains through virtual asset transactions or financial asset exchanges may be recognized as "concealing or disguising the source and nature of criminal proceeds and their gains."

In the same month, a technology company and an energy group launched a new energy charging pile RWA project, completing a financing of 100 million RMB, opening up a new compliant path for the integration of traditional assets and the digital economy.

June: Shanghai Releases the First Industry Report for Web3.0

The "2024 Shanghai Web3.0 Innovation Ecosystem Construction Research Report" points out that Web3.0 is crucial for the information technology industry, and RWA will become a future development trend. The report mentions that global financial institutions are gradually accepting Web3.0 assets and technology, and Hong Kong has also made significant progress in the fields of cross-border payment and RWA. Shanghai plans to promote the construction of the Web3.0 ecosystem through policy support and innovative development.

February: Progress Related to Virtual Currency Pyramid Scheme Cases

A local public security bureau continues to promote the "Fox Hunt" special operation, successfully persuading two suspects of economic crimes to surrender. In 2022, the bureau cracked a pyramid scheme case involving a virtual currency platform, with an amount involved reaching 2 billion yuan. After extensive investigation and cross-regional cooperation, the measures taken ultimately prompted the two fugitives to turn themselves in.

January: Seven Departments Jointly Release Opinions on the Innovative Development of Future Industries

The Ministry of Industry and Information Technology and six other departments jointly issued the "Implementation Opinions on Promoting the Innovative Development of Future Industries", emphasizing the exploration of blockchain as the core technology and data as the key element to build the next generation of internet innovative applications and digital ecology. The opinions encourage accelerating software product research and development in fields such as the new generation of mobile information networks and brain-like intelligence, promoting the demonstration application of new products, and stimulating the potential of information services.