Purpose of the Circular

• To saveguard the interests and property rights of the public
• To protect the status of legal tender of RMB
• To precaution against the risks of money laundering, and
• To maintain financial stability

Summary

1. Characteristics of Bitcoin
   Bitcoin should be treated as a virtual commodity. It should not enjoy the legal status same as those of currencies, and should not be circulated in the market as currency.

2. Ban of Businesses Related to Bitcoin
   Financial Institutions and Payment Institutions
   2.1. should not set price on Bitcoin products and services,
   2.2. should not trade Bitcoin or act as a central counterparty
   2.3. should not provide insurance coverage on Bitcoin
   2.4. should not provide businesses directly / indirectly related to Bitcoin, including register, trading, clearing, settlement of Bitcoin; receiving or using Bitcoin as method of payment; exchanging Bitcoin for RMB or foreign currencies; participating in businesses related to storing, custody, collateralizing of Bitcoin; Issuing financial products related to Bitcoin; taking Bitcoin into asset pool of trusts and funds.

3. Governance on Bitcoin-Related Websites
   Websites providing Bitcoin registration / trading services should register with relevant telecommunication regulator.

4. AML
   Institutions that legally provides Bitcoin registration / trading services should be subject to AML supervisory by local PBoC branches.
   Websites providing Bitcoin registration / trading services should fulfill their obligations on AML, therefore customer identity should be identified. Customers should be required to register in their real name, and provide their name, ID number, etc for record keeping.
   Financial Institutions, Payment Institutions and Websites providing registration and trading services should report any suspicious transactions related to Bitcoin and other virtual commodities to China Anti Money Laundering Monitoring and Analysing Center (CAMLMAC), and should cooperate with PBoC on AML investigation. Illegal activities involving the usage Bitcoin should be reported to public safety department.

5. Enhancing Public Education on Currency Knowledge and Investment Risks