On January 26, 2018, the China Internet Finance Association issued a reminder to warn investors for ICOs and virtual currencies and urging investors to recognize the risks of offshore ICOs and virtual currency trading platforms.
On the same day, Jia Kang, former director of the Institute of Financial Science at the Ministry of Finance and Dean of Huaxia New Supply Economics Institute, told Fenghuang Wang Financial News that China has adopted a relatively harsh attitude toward bitcoin. Exchanges are prohibited and ICOs are not allowed either. He said that in a sense it’s only a statement of the Chinese government, but bitcoin and other virtual currency transactions still exist. It is impossible to truly ban bitcoin because it can be traded as long as people can access the internet.
As for bitcoin’s underlying blockchain technology, he said it must be taken seriously as blockchain is an irreversible historical trend. According Jia Kang, some progressive organizations should quickly use blockchain to innovate and develop according to their own situation.
Jia Kang also shortly talked about the property marker and China’s ‘hukou’ system. He believes that people should have the same rights and access to public services such as education, regardless they buy or rent a property and especially in China’s first and second-tier cities. This will also ensure that the house prices in areas around schools won’t skyrocket.