The world’s second-largest economy, China just recently published a draft law that seems to ban entities from issuing digital cryptos.
This could be the first time the word ‘Crypto’ has appeared in any of China’s formal laws.
The new draft of legal comments cited on Fxstreet, clearly states that no individual or unit can produce or sell tokens to replace CNY in circulation in the market.
The violation of this law will have severe consequences according to the draft which reads:
“For anyone that violates such regulation, the PBoC will halt such activities and forfeit any proceed from the making and selling of yuan-backed digital tokens and issue a fine that is up to five times of the involved proceeds.”