Crypto Exchange Set To Debut In China Despite Unfavorable Crypto Laws
One thing that follows the reach of digital assets is the springing up of crypto exchanges worldwide. Over the years, even though not so many people have shown their interest in crypto, digital asset exchanges have increased as crypto continues to gain mainstream adoption.
In a new update that was received, a South Korean originated crypto exchange has announced that it has set up another one of its base of operation in China. Even though China has announced a ban for digital assets trading, the exchange in question, DBX, has noted the destination as its next point of setting up a branch.
The company would be recognized as a corporation
The report was compiled and submitted by a local news outlet in the country, Money Today. According to the outlet, the firm has been granted a temporary license to set up shop in the country by Chinese authorities. It noted that after a thorough background check and inspection, the Chinese authorities officially awarded the license to the crypto exchange towards the end of last year. To cap up the license, the company was officially granted the registration license some days ago.
“As opposed to a previous license that will register us as a crypto exchange, we have chosen to lobby for a license that will see us stand and establish as a corporation. This means that getting this license was the most important step of the evaluation and inspection,” the exchange said.
The exchange also said that as part of an international affiliation that it had, it could get the license and registration done easily. With this, they are looking to venture into other countries. Even though the license and registrations are now out of the way, the company said services would start in full swing by March and hope to take on “Tabi” as their brand name.
Chinese central bank still gearing up for the launch of its CBDC
Even though the authorities have granted them the license to operate, it is still unclear what type of services the firm hopes to offer to the Chinese citizens. Reports claim that the company might decide to work in blockchain-related fields because it is opposed to anything related to crypto trading. Before China became what it is today regarding crypto activities, the country was one of the largest crypto trading nations across the globe.
It was not until 2017 that the Chinese government announced a ban on Initial Coin Offerings across the country, which was extended to crypto a while later. Even though crypto has not been outrightly shut out, the trades regarding the digital asset has been streamlined and monitored over the years. Entities across the country are also allowed to treat crypto as commodities, according to a recent update on the government’s crypto laws.
With those laws in place, most Chinese who dabble in digital assets are now trading via over-the-counter methods. While that speaks nothing about a huge population of crypto traders, the Chinese Central bank has also improved its plan to launch its CBDC. The bank has used the help of both public and private entities in a test that has taken place all over China.