Dacheng Attorney Delivers a Speech on Legal Issues Surrounding Bitcoin at AmCham Shanghai

On March 13, the American Chamber of Commerce in Shanghai (“AmCham Shanghai”) hosted an event on “Trends and Developments in Bitcoin, the China Perspective”.

Bobby Lee, CEO and co-founder of BTC China, Zennon Kapron, founder and managing director of Kapronasia Financial Industry Consulting (Shanghai) Co., Ltd. and Shang Jiangang, senior partner from Dacheng’s Shanghai office, delivered keynote speeches and exchanged views with participants.

More than fifty members of AmCham, most of whom were professionals, scholars and officials in investment banking, high and new technology, legal services and financial regulation, participated in the event. These included management staff of the Shanghai representative office of America’s Cathay Bank, representatives of eBay CBT in China, vice president of ChinaVest Shanghai, partners from America’s Armstrong Teasdale LLP, partners from Deloitte Touche and partners from the Shanghai representative office of Germany’s Taylor Wessing.

Mr. Shang Jiangang provided an analysis of legal issues surrounding Bitcoin in China, covering the regulatory development over Bitcoin, legal risks in Bitcoin investment and reasons why people object to it, especially in terms of the differences between Bitcoin as a virtual product and renminbi, electronic currency and ordinary virtual currency. Mr. Shang also made some projections over the future of Bitcoin in China on the basis of his understanding of regulation over the currency in China.

In the discussion session, Mr. Shang pointed out that although its quantity would be capped, Bitcoin’s open-endedness and decentralized nature would lead to the emergence of more and more such virtual products via electronized mining and consequently the overflow of it would prove risky. Mr. Shang suggested that we should improve existing policy measures, enhance internet finance regulation and investor education, and restrict the amount of investment in Bitcoin.

The three speakers’ speeches provoked heated discussion and won wide applaud from the participants.