Author: Fangda Law Firm; Source: Digital Legal Currency Research Society
December 22, 2023 , the State Press and Publication Administration issued the "Administrative Measures for Online Games (Draft for Comment)" (hereinafter referred to as the "Administrative Measures"). Among them, for the first time, regulations stipulating that online game currency transactions be bound to real-name digital RMB wallets: "Online game currency transactions should be conducted through a "real-name digital RMB wallet," and anonymous digital RMB wallet transaction services are not allowed to be provided to users."
Digital RMB application for online game currency transactions under the "Administrative Measures"
According to the "Administrative Measures" Article 62 of the "Administrative Measures" states that online game coins are issued by online game operating units. Online game users use legal currency to purchase directly or indirectly at a certain proportion. They exist outside the game program and are stored in the server in the form of electromagnetic records. A virtual "exchange tool" expressed in a specific digital unit; online game currency trading services refer to the act of providing platform services for trading online game currency between users.
Online game currency is an integral part and derivative product of online games. Online game currency is essentially a virtual currency in online games. Due to the global versatility and specific value of online game currency, compared with the traditional money laundering model, it is easier to achieve illegal exchange of funds through cross-border transactions in online games. Therefore, In recent years, the phenomenon of channel money laundering represented by online game coins, equipment and other virtual goods has become increasingly serious.
Due to its anonymous nature, cash is a key area of anti-money laundering supervision. Although digital renminbi can conceptually be understood as a digital replacement for renminbi cash, digital renminbi has the immutability and traceability of blockchain technology. The entire process is controllable and the flow of funds can be traced. It can help the government combat and control money laundering and tax evasion. Provide powerful technical means for other financial crimes.
If the transaction of online game currency is based on a real-name digital RMB wallet, the transaction can be traced back to the parties and their subject information, which can effectively Prevent online game currency trading platforms from becoming a funding channel for money laundering and telecommunications fraud crimes.
Because the digital renminbi supports binding to the user’s real identity information and the traceability of transactions, it can become an important tool for regulatory authorities to supervise transaction processes and monitor capital flows. Under the general trend of the country strengthening anti-money laundering supervision, combating money laundering and telecommunications fraud, and strengthening monitoring of cross-border capital flows, the application of digital renminbi will eventually expand to other digital economic fields such as live broadcast platforms and e-commerce platforms.
Legal support andcompliance outlook for digital renminbi
On October 23, 2020, the People's Bank of China issued the "Law of the People's Republic of China on the People's Bank of China (Revised Draft for Comments)", which added on the current basis that "RMB includes physical and digital forms." ”, providing a legal basis for the existence and use of digital renminbi.
Currently, many local governments have introduced policies to promote the application of digital renminbi. After the "Administration Measures", it is expected that other industries will implement the use of digital renminbi.
The real-name digital RMB supports the binding of users’ real identity information and the traceability of transactions, and can be used by regulatory agencies to effectively manage the digital economy. The mandatory application of digital renminbi in the digital economy may be an important direction for regulatory authorities to monitor capital flows in the future. Therefore, for relevant digital economic entities, it is necessary to deploy the main compliance considerations for digital renminbi in advance.
1. Anti-money laundering
my country’s anti-money laundering regulatory mechanism It mainly prevents and responds to money laundering risks by requiring financial institutions to perform customer due diligence, large-value transaction and suspicious transaction reporting and other obligations. As mentioned earlier, cash management has always been a key focus of anti-money laundering regulation.
From a practical perspective, with the widespread use of digital renminbi, as digital cash, it has the characteristics of security, real-name system and traceability compared with traditional cash. , which can appropriately reduce the burden of bank anti-money laundering compliance in cash management.
Currently, due to limitations in regulatory resources, non-financial digital economy operating entities have not yet been included in the anti-money laundering regulatory system. Considering the potential money laundering risks of these industries and entities, With the promotion of digital renminbi, it is possible that digital renminbi will be included in the anti-money laundering regulatory system through the connection point of digital renminbi.
2. Anti-telecom fraud
December 2022 The Anti-Telecommunications Network Fraud Law, which was implemented on the 1st, sets the obligations for customers’ true identity identification and transaction monitoring and reporting for telecom business operators and Internet service providers. Its implementation method is very similar to the anti-money laundering obligations. at.
The obligated subjects of the "Anti-Telecommunications Network Fraud Law" include telecommunications business operators, banking financial institutions, non-bank payment institutions, and Internet service providers. In addition to the online games already involved, other regulatory actions against telecommunications network fraud in the future may also require the binding of real-name digital wallets.
3. Cross-border payment
"China Digital RMB The "White Paper on R&D Progress" states that the People's Bank of China will respond to the initiative of international organizations on improving cross-border payments and establish legal digital currency exchange arrangements and regulatory cooperation mechanisms with relevant authorities under the requirements of "lossless, compliant, and interoperable". Practice has shown that digital currency can play a positive role in improving the efficiency of cross-border payments and reducing cross-border payment costs.
Currently, the Monetary Authority of Singapore and the People's Bank of China are launching a pilot program to allow travelers from both countries to use digital renminbi for tourism consumption in Singapore and China. The multilateral central bank digital currency bridge project jointly launched by the People's Bank of China, the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the United Arab Emirates, and others has also made positive progress.
Since digital renminbi can be paid through digital wallets without a network, its advantages will be more obvious in countries or regions with underdeveloped financial infrastructure. Help create a regional cross-border payment platform in economically underdeveloped countries along the “Belt and Road”. At the same time, in areas where the judiciary is imperfect and the enforcement environment of legal agreements is weak, my country can help some developing countries with relatively dangerous public security due to weak banking systems and large amounts of cash to access the digital currency system, thus promoting the cross-border adoption of digital renminbi. environment application.
Digital RMB already has the capability of cross-border payment, is low-cost, and can achieve real-time settlement. It has significant advantages compared with traditional fund payment systems that are higher in cost and less efficient. It is expected that the digital renminbi will gradually promote the application in cross-border payments in a step-by-step manner. (Source: Fangda Law Firm, this article is an excerpt)
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