China’s central bank is committed to maintaining its long-held aggressive position on cryptocurrencies.
According to the Chinese government mouthpiece People’s Daily, Yin Youping, deputy director of the Financial Consumer Rights Protection Bureau, recently stated that digital assets such as Bitcoin are not legal cash and have no “real value.” He continued by stating that cryptocurrencies are “pure investment speculation” and advising consumers to avoid them.
China recently slapped a regulatory ban on cryptocurrency mining and trading businesses. And on occasion, they busted illicit mining operations that were operating in violation of China’s crypto prohibition statute. Once again, in a statement regarding cryptocurrency-related crimes, PBOC stated unequivocally that they are planning anything to improve the ecosystem.
The PBOC increased its crackdown on cryptocurrency trading in response to the growing popularity of cryptocurrencies. Additionally, the bank has collaborated with the China Banking and Insurance Regulatory Commission to “decisively” crackdown on unlawful bitcoin fundraising.
The PBOC intends to build a workable mechanism to deal more severely with cryptocurrencies. Simultaneously, it encourages individuals to report crypto-related offenses. Earlier this year, many Chinese provinces banned Bitcoin mining, thereby prohibiting the entire business and precipitating the “great migration” of miners.