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Lawyers Discuss ‘What's Next’ After China Shuts Down Cryptocurrency Exchange

Legaltech News

20 Sep 2017

Joshua Ashley Klayman offered an explanation of China’s ban on cryptocurrency exchanges and its potential impact in the Legaltech News article “Lawyers Discuss ‘What's Next’ After China Shuts Down Cryptocurrency Exchange.”

“China may have pressed pause on token sales and cryptocurrency exchanges in order to investigate and punish potential malfeasance, and to drive bad actors and other non-compliant parties from China’s token space,” she said. “It’s also possible that they may be halting the activities with a view to later allowing token sales and token exchange activities to resume, albeit in a more closely supervised and regulated manner.”

On its potential impact, she explained that “Already, cancellations of cryptocurrency-related conferences have been reported, and potential token issuers have indicated that they had cancelled previously scheduled trips to meet with potential investors. China’s role as a token hub of sorts may have been diminished, but it ultimately may become a safer jurisdiction for token investors if China ultimately decides to let token sales resume. There have been some suggestions that China could block access to overseas Bitcoin exchanges, in addition to the local ban. In addition, some have expressed concerns that China might consider putting a stop to Bitcoin mining.”

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