Henan Legal Committee Defers to National Crypto Regulation
- Henan defers crypto legislation to national level regulation efforts.
- National system for crypto assets under development.
- Local legislation is deemed inappropriate currently.
The Henan Provincial People’s Congress announced that local legislation on virtual currencies involved in criminal or civil cases is unsuitable as the Ministry of Public Security is establishing national regulations.
This national focus underscores China’s continued stringent stance on cryptocurrency management, affecting all virtual currency transactions and enforcement within the country.
Henan Provincial Legal Committee has announced that local legislation on virtual currencies is not suitable. The decision arises as the national Ministry of Public Security is developing a comprehensive system for handling virtual currencies involved in cases.
The Henan Provincial People’s Congress and Legal Affairs Committee are deferring legislative actions related to virtual currencies. This follows a directive indicating that only national regulation by the Ministry of Public Security can ensure consistent asset management.
Virtual currencies possess property attributes and are considered involved property in judicial practice. The Ministry of Public Security is studying and formulating relevant systems for such assets, thus local legislation is not appropriate. National-level regulation is required for unified management. – Henan Legal Affairs Committee, Official Body, Henan Provincial People’s Congress
The impact on local industries and affected parties is currently minimal. The Ministry of Public Security is focusing on creating a unified framework, which affects all virtual currencies within China’s jurisdiction, especially during investigations.
This decision reinforces the centralized approach to handling virtual currencies in China, affecting financial stability in the crypto market. Major cryptocurrencies such as BTC and ETH remain within national regulation scope, awaiting new regulatory frameworks.
No immediate changes are expected for local enforcement bodies. The need for a unified system reflects ongoing national strategies to streamline asset seizure and management within the crypto sector.
Past actions by Chinese authorities, including bans since 2017 and intensified enforcement strategies, set a precedent for current policies. Regulatory consistency remains vital as China continues to shape global perceptions and handling of virtual currencies.
