The People’s Bank of China (PBoC) said it will continue to crack down on illicit cryptocurrency activities. In addition, it will supervise financial platforms, to comply with regulations.
Likewise, the country has previously cited problems related to the use of mining energy and fraud. Also, money laundering, as some of the key issues related to the crackdown on cryptocurrencies.
Specifically, the People’s Bank of China said in a statement that “will keep a high pressure on virtual currency trading». In fact, the statement comes after bank officials set the PBoC’s priorities.
In particular, according to Lieutenant Governor Liu Guiping, the bank is also considering working on the creation of a financial stability law.
China vows to continue cracking down
In particular, on July 30, the People’s Bank of China held a working conference. With the aim of studying the current economic situation, to make important arrangements.
«In the seventh point. It was indicated to promote the standardized development of financial services for companies. And, cracking down on illegal cryptocurrency activities».
By the way, the People’s Bank of China (PBoC) congratulated itself. By “cracking down on illegal virtual currency activities” at the beginning of this year. And, he said he will continue to oversee financial platforms.
To recall, the Chinese government has restricted cryptocurrency trading in the country since 2017. When it banned Chinese financial institutions from dealing with cryptocurrencies. Thus, that prevented cryptocurrency exchanges from operating in the country.
As a consequence, on May 17 this year, three major Chinese trade associations reconfirmed their commitment to that regulation. Claiming that speculative trading was «seriously infringing on the safety of people’s property. And altering the normal economic and financial order».
Specifically, the China Internet Finance Association, the China Banking Association and the China Payments and Clearing Association issued a joint statement. Warning the public about the risks of investing in cryptocurrencies.
Then China increased its efforts by introducing restrictions on crypto mining, to “prevent and control financial risks.” Restrictions on Bitcoin mining continued to sweep across the country throughout June.
“They must not provide other financial services related to cryptocurrencies.”
Likewise, the Agricultural Bank of China (AgBank) has indicated that it will follow the example of the PBoC. That is, it will work to end the activities related to the cryptocurrencies of its clients.
Working on the development of your CBDC
As a fun fact, while cracking down on cryptocurrencies. The PBoC is busy working on its own central bank digital currency (CBDC), the digital yuan.
So a recent report indicates that the digital yuan has been used in 70.75 million transactions. Reaching a total value of 34.5 billion yuan ($ 5 billion) at the end of June.
It can be concluded that China launched its most intense crackdown on cryptocurrency trading, what do you think about it? Let us know in the comment box.
I close with this phrase by Margaret Thatcher: «Every regulation is a restriction of freedom. Each regulation has a cost».