[Davis Polk & Wardwell LLP](/source/68486) [China further tightens controls over crypto transactions](/view/B43CDCD0CA47B832973C7E10267D6AB8CC7B3257) now [Qurate Retail Inc.](/source/125704) [Deutsche Bank 2021 Leveraged Finance Conference](/view/D51FAFBA9755E0421D289964C9F05C5CC60541E9) -20m [Shearman & Sterling LLP](/source/128933) [Restructuring Panel — NPL Management Greece 2021](/view/82931841F3D572C3466BF67BA621ADC53F8AA984) -2h 13m [HubSpot Inc.](/source/144105) [A Complete Guide to Successful Brand Positioning](/view/F12C61CEDD55E6F91D422D0FC0B0E7E566B5BCD7) -2h 15m [HubSpot Inc.](/source/144105) [5 Tips to Get Started with LinkedIn Sales Prospecting [+ Free Message Template]](/view/275A3B5F9D341B4CF57BA0B2C8A3220E2FE4E661) -2h 15m [Davis Polk & Wardwell LLP](/source/68486) [Angela Libby speaks at INSOL’s “Pre-insolvency remedies” webinar](/view/3C36E63667210A36A15B1721B2236D9FBFF047A4) -2h 17m [SAG-AFTRA](/source/76336) [Oct. 05, 2021 – 9:30 AM to 10:30 AM PT Multiple Locations The Actors Fund Presents: Self-Care to Give Care Read More](/view/DFF3F3FC54DFFE920AF9D4C359B20A3B67641411) -2h 18m [SAG-AFTRA](/source/76336) [Oct. 05, 2021 – 12:00 AM to 11:45 PM PT Multiple Locations Actor-to-Actor: Dick Van Dyke Read More](/view/3B843E5DD116E79A7E9853F3D85312E489C26FEB) -2h 18m [Iteris Inc.](/source/66082) [AMPO 2021](/view/6B51B651CA4CB4A9E0832FC32072FD6F22E38C0B) -2h 19m [Iteris Inc.](/source/66082) [ITS Michigan Annual Meeting](/view/52BAA03B2B06BE8963DBC406CB54D66FD1C98C0D) -2h 19m 10/04/2021 | News release | Distributed by Public on 10/03/2021 20:28 The Chinese authorities recently issued a notice regarding cryptocurrency trading hypes, prohibiting (i) overseas cryptocurrency exchanges from servicing residents in mainland China and (ii) individuals in mainland China from working as employees of overseas exchanges. The Notice also bars marketing, payment, settlement services or technical support to overseas cryptocurrency exchanges and calls for a comprehensive monitoring system over cryptocurrency activities. The PRC appears to be further tightening controls on cryptocurrency activities. On September 24, 2021, the People's Bank of China (PBoC), China's central bank, issued the Notice Regarding Further Prevention and Management of Risks Associated with Cryptocurrency Trading Hypes ( September 2021 Notice ) jointly with nine other Chinese national government bodies [[1]]https://www.davispolk.com/insights/client-update/#_ftn1 . The September 2021 Notice prohibits (i) overseas cryptocurrency exchanges from providing services to residents in mainland China and (ii) individuals in mainland China from working for overseas exchanges as their employees., and bars companies and individuals from providing marketing, payment, settlement services or technical support to overseas cryptocurrency exchanges. It also calls for a comprehensive monitoring system over cryptocurrency activities of individuals and companies in mainland China, as evidenced by the number of government agencies involved, giving local authorities wide authority to monitor their regions and raise early warning flags. This client alert highlights some of the key provisions of the September 2021 Notice and puts it in the context of the history of prior controls imposed by the Chinese government over the crypto industry. The September 2021 Notice declares cryptocurrency-related business activities in mainland China as illegal and prescribes implementing measures to be taken by various governmental agencies to ward off the risk associated with cryptocurrency trading hypes. Its key elements are summarized below. The PBoC issued a Q&A in relation to the September 2021 Notice. The Q&A confirmed that the objective is to continue to exert high pressure against cryptocurrency activities which are believed by the Chinese government to pose high fraud and AML risks and threaten the nation's financial stability, and to draw on the government's experience in dealing with domestic cryptocurrency exchanges and ICO platforms. The September 2021 Notice reiterates the Chinese government's long-standing position that cryptocurrencies are not equivalent to fiat money and cannot be circulated freely in the market as currencies. It goes further by explicitly characterizing cryptocurrency-related business activities as illegal: The September 2021 Notice calls for coordination between central government and regional/local authorities, and among the different ministerial agencies overseeing financial and banking matters, public security, cybersecurity, as well as the prosecuting authority and the judiciary (sections 5 and 6). The focus will be: Further, regulators overseeing different sectors and local governments are mandated to engage fully in monitoring the industries and regions under their respective jurisdictions (section 15), and launch education campaigns to raise public awareness regarding the risks of cryptocurrency trading hypes (section 16). The Chinese Government has issued several guidance letters and notices regarding cryptocurrency businesses in mainland China, adopting an increasingly tight approach in recent years as shown below. The September 2021 Notice contains pointed language targeting overseas cryptocurrency exchanges that provide service to residents in mainland China, making clear that it is illegal for an overseas exchange to: Regarding the first restriction, overseas cryptocurrency exchanges should consider (i) conducting a review of KYC policies and procedures for customer onboarding, including considering how to detect nominee arrangements involving underlying mainland Chinese residents, (ii) implementing necessary IP address blocks and including warning language in customer interface, and (iii) scrutinizing marketing materials and activities to ensure no active targeting of potential mainland Chinese customers. As to the second restriction, the September 2021 Notice does not contain language making it illegal for Chinese nationals living outside mainland China to work for overseas exchanges. As to the last restriction, overseas exchanges may consider reviewing their business relationships, in particular reviewing their service vendor list and third-party relationship onboarding procedures, to identify and risk-manage exposure generated by any mainland Chinese business partners. [[1]]https://www.davispolk.com/insights/client-update/#_ftnref1 The other government bodies include the Cybersecurity Administration, the Ministry of Industry and Information Technology, the Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission (CBIRC), China Security Regulatory Commission, the State Administration of Foreign Exchange, the People's Supreme Court, and the People's Supreme Procuratorate.