CME Market Regulation Department Issues Advisory on China Cryptocurrency Prohibitions

December 3, 2021

On December 3, 2021, the CME Market Regulation Department issued Special Executive Report, No. 8899 (“CME SER# 8899”).

The report reminded market participants that China had “recently prohibited all cryptocurrency activities for PRC residents, including trading of derivatives on cryptocurrencies” and advised market participants that “they are required to abide by local regulations with respect to trading in CME products referencing cryptocurrencies, including any restrictions imposed by a market participant’s home jurisdiction.”

CME SER# 8899 provided as follows:

Special Executive Report

DATE: December 3, 2021
SER#: 8899
SUBJECT: Cryptocurrency Futures and Options

Regulators in the People’s Republic of China (“PRC”) recently prohibited all cryptocurrency activities for PRC residents, including trading of derivatives on cryptocurrencies. Please refer to the Notice on Further Preventing and Resolving the Risks of Virtual Currency Trading Speculation (the “Notice”) issued by The People’s Bank of China and other regulators.

Chicago Mercantile Exchange Inc. (“CME”) reminds all market participants that they are required to abide by local regulations with respect to trading in CME products referencing cryptocurrencies, including any restrictions imposed by a market participant’s home jurisdiction.

https://www.cmegroup.com/content/dam/cmegroup/notices/market-regulation/2021/12/crypto-China.pdf

The People’s Bank of China’s “Notice on Further Preventing and Resolving the Risks of Virtual Currency Trading Speculation” can be accessed here.