The Central Bank Governor of China has said that China would be cracking down even harder on crypto
China’s new central bank governor Pan Gongsheng has introduced a five-point strategy to ensure financial stability, with an emphasis on regulatory compliance.
The strategy aims to protect investors from the dangers posed by “fake gold exchanges,” external asset managers, and unlawful fundraising.
China’s current attempts to control its financial industry, which include a crackdown on unlawful cryptocurrency operations and the development of its own digital currency, DCEP, are consistent with these initiatives.
Pan Gongsheng, China’s newly appointed central bank governor, has made his position on preserving financial stability clear. The governor has pledged to put a stop to unlawful fund-raising and money-laundering, as well as the speculation of crypto transactions.
According to reports in the local press, the governor has maintained his administration’s emphasis on regulatory compliance by stressing the need for all financial transactions to be conducted inside a licensed framework. This is a part of a larger plan to increase economic stability in China despite external challenges.
Pan reaffirmed that all financial activities must be done with a valid license when he presented the “Report on the Financial Work of the State Council” at the sixth meeting of the Standing Committee of the 14th National People’s Congress, which is China’s highest legislative body. This showed that the government is still committed to financial honesty.
Pan Gongsheng, as part of his effort to keep the economy stable, proposed a five-point agenda to lessen financial dangers. Risks linked with “fake gold exchanges” and external asset management firms will be addressed as part of the strategy. Local issues with the use of virtual currencies must also be addressed.
China’s continued attempts to regulate the financial industry are in line with the new policy orientation of the central bank. China has historically adopted many measures, including the implementation of tight monetary policies and financial market operations, in an effort to maintain a firm grip over the financial sector.
In addition, the government has been working on adopting the Digital Currency Electronic Payment (DCEP) as part of a wider effort to fortify the economy’s monetary infrastructure.
The Governor’s statements come at a time when China is cracking down on cryptocurrency trade and mining, both of which are prohibited there. Chinese cryptocurrency exchanges have been illegal since 2017, although some Chinese investors have found ways around this ban by using overseas exchanges or engaging in P2P transactions.