All You Need to Know about Gold Regulations in China

China is one of the world’s biggest producers and consumers of gold, and it plays a significant part in the global gold market. To ensure the safety and integrity of the gold trade, the Chinese government has established a number of laws and licensing requirements for gold traders. In this article, we will examine gold trade licensing and regulation in the People’s Republic of China (PRC) and what traders and investors should know.

China’s gold trade regulations.

The Measures for the Administration of Gold and Silver Trading, the Gold and Silver Jewelry Quality Supervision and Inspection Center, and the Measures for the Administration of the Gold Reserves of the People’s Bank of China are just a few of the laws and regulations that the Chinese government has put in place to control the gold trade.

The guidelines for gold traders’ licensing are outlined in the Measures for the Administration of Gold and Silver Trading, which were first released in 2002. The measures mandate that gold dealers obtain a license from the provincial government and adhere to a number of rules, including those pertaining to know-your-customer (KYC) and anti-money laundering.

Additionally, the General Administration of Customs of China controls the import and export of gold. Gold imports and exports must go through specific banks or other financial institutions, and traders must get permission from the authorities before conducting a trade.

Chinese Gold Traders Must Have a License.

Traders must submit a thorough application to the provincial government in order to obtain a license for trading gold in China. Information on the organization’s structure, shareholders, management, and financial resources must be included in the application.

Additionally, gold traders must show that they have the required knowledge, experience, and compliance protocols, as well as that they have established the proper risk management and compliance practices. In order to make sure they meet the requirements, background checks must also be performed on them.

Gold traders are required to abide by the rules outlined by the Chinese government once a license has been granted. To make sure they continue to meet the requirements, they must also go through routine audits and inspections.

Global Gold Market Effect of Gold Trade Regulation and Licensing.

The licensing and regulation of gold dealers in China has a sizable effect on the world gold market. China’s gold market is a significant contributor to the global gold market as one of the biggest consumers and producers of gold in the world.

The Chinese government contributes to ensuring that the gold trade is conducted in a transparent and secure manner by regulating it. As a result, fraud and other illegal activities are reduced, and the integrity of the gold market is preserved.

International buyers and investors who want to participate in the gold trade are also given assurance by China’s stringent rules and licensing requirements. As a result, the market for gold trading is made stable and secure, which encourages more investors to participate.


The regulation and licensing of the gold trade are essential to preserving its integrity and security because it is a significant part of the global economy. Gold traders in the People’s Republic of China are required to obtain a license from the provincial government in order to conduct business and are subject to a number of rules and laws.

The Chinese government contributes to maintaining the integrity of the gold market by regulating the gold trade. This also helps to stop fraud and other illegal activities while giving international clients and investors peace of mind. As a result, and going forward, the regulation and licensing of gold traders in China will continue to play a significant role in the global gold market. 

Author: Pooyan Ghamari, Economist Visionary and Specialist in Gold and Banking



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