Regulation Of Cryptocurrency In China

Cryptocurrency-related activities have received little tolerance from the Chinese government. Initial coin offerings (ICO) were banned in China in September 2017. Exchange platforms that traded cryptocurrencies or provided facilitation services were also ordered to be closed following the crackdown on ICO. Many exchanges chose to relocate to jurisdictions that are more favorable to cryptocurrencies than China. However, due to the long-arm jurisdiction of the Chinese criminal laws, organizers and promoters of overseas ICO and exchanges may not be free from the jurisdiction of Chinese criminal laws, if those persons are Chinese citizens or if Chinese investors invested in overseas ICO or traded cryptocurrencies on overseas exchanges.