South Korean Crypto Exchange Becomes the First Overseas Platform Legally Recognized in China

The South Korean cryptocurrency exchange has announced the establishment of its first legally recognized affiliate in China. Although the country has banned all local trading services in cryptocurrencies, DBX said it has already obtained a license to do so.

Final certificate of approval issued on 5 February

According to Money Today, DBX has received a business license to establish a subsidiary in China as part of its overseas expansion plans. The cryptocurrency exchange is affiliated with the Korea Blockchain Coordination Association.

According to the stock exchange, the Chinese government has announced the opening of the branch on the 28th. December 2020, initially with a temporary permit. The 5th. However, the final certificate of incorporation was issued in February 2021.

A TAC spokesperson noted:

The business formation permit obtained by the Chinese government this time is one obtained through opposition to the establishment of foreign (crypto) exchanges in China, so it may make even more sense.

The branch, called Tabi, will open in March at the latest, cryptocurrency officials said. ATC plans to expand its operations to the United States of America, Singapore, Indonesia and Cambodia.

Domestic crypto trading is still prohibited in China

The relationship between cryptocurrencies and China has been quite tumultuous. Since 2017, Chinese regulators have banned cryptocurrency activities by initially banning local cryptocurrency exchanges. However, the government went further and closed down domestic trade and mining.

In recent years, however, the country’s authorities have provided some clarification on their stance on bitcoin (BTC). In August 2020, the Beijing Arbitration Commission published an article on the legal nature of bitcoin in China.

They explained that the use of bitcoin as a commodity has never been prohibited at the Asian giant.

China is also paving the way for the launch of its future central bank digital currency (CBDC), the digital yuan. It was recently reported that the country is allocating 10 million yuan ($1.55 million) for its CBC in Beijing. Recipients can spend the digital yuan during Chinese New Year.

What are your thoughts on opening a foreign branch of a cryptocurrency exchange in China? Let us know your comments in the section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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frequently asked questions

Is crypto legal in China?

China does not recognize cryptocurrencies as legal tender, and the Chinese banking system does not accept cryptocurrencies or offer related services.

Why are cryptocurrencies banned in China?

In 2017, Beijing introduced a ban on Initial Coin Offerings, a way to issue digital tokens and raise funds. Moreover, the government has cracked down on companies involved in cryptocurrency trading, such as. B. Exchange. China is also striving to become more environmentally friendly.

Are cryptocurrencies legal in South Korea?

In South Korea, cryptocurrencies are not considered a legal currency, and their exchange, while legal, is part of a closely monitored regulatory system.

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