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China doubles down on cryptocurrency crackdown: Central bank Governor reiterates stance

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TL;DR

  • Pan Gongsheng, China’s new central bank governor, emphasizes regulatory compliance and introduces a five-point plan to maintain financial stability.
  • The plan targets various financial risks, including “fake gold exchanges,” third-party asset management companies, and illegal fundraising activities.
  • These measures align with China’s ongoing efforts to regulate its financial sector, including a crackdown on illegal cryptocurrency activities and the introduction of its own digital currency, DCEP.

China’s newly appointed central bank Governor Pan Gongsheng has clarified his stance on maintaining financial stability in the country. The governor said he would halt the speculation of crypto transactions and crack down on illegal fund-raising and money laundering. 

Stricter oversight on financial licensing

According to a  local media outlet report, the governor emphasized the importance of operating all financial activities under a licensed framework, signaling a renewed focus on regulatory compliance. This comes as part of a broader strategy to bolster China’s economic resilience amid global uncertainties.

In his presentation of 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, China’s top legislative body, Pan reiterated that all financial operations must be conducted with a valid license, reinforcing the government’s commitment to financial integrity.

As a part of his strategy to maintain financial stability Pan Gongsheng, presented a five-point plan to reduce financial risks. The plan includes taking measures to remediate risks associated with “fake gold exchanges” and third-party asset management companies. It also involves addressing local virtual currency transactions.

The central bank’s new policy direction aligns with China’s ongoing efforts to regulate the financial sector. In the past, China has taken several steps to control the financial market, including implementing stringent monetary policies and financial market operations. 

Additionally, the government has been working on introducing its own digital currency, known as the Digital Currency Electronic Payment (DCEP), as part of its broader strategy to strengthen its financial system.

The Governor’s comments come amid China’s heightened regulatory actions against cryptocurrency trading and mining, activities that are officially considered illegal in the country. While China has prohibited local cryptocurrency exchanges since 2017, a number of investors have circumvented these restrictions by trading through foreign platforms or via peer-to-peer transactions.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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