Chen Weigang To Talk About ICO Regulations And Digital Currency Trading In China
Chen Weigang To Talk About ICO Regulations And Digital Currency Trading In China
February 29, 2020
Chen Weigang To Talk About ICO Regulations And Digital Currency Trading In China
Chen Weigang To Talk About ICO Regulations And Digital Currency Trading In China
February 29, 2020

Chen Weigang, the former Vice President of China Insurance Regulatory Commission of the Communist Party, sat down with Yiben blockchain media to talk about ICO regulations and digital currency trading in China.

On February 27, it has been reported that he told the media that a central bank digital currency (CBDC) is an important strategic plan for the Chinese RMB to gain an upper hand in international economic development.  

However, Chen was asked to comment on the ongoing ICO Ponzi schemes in China, as he believed that ICOs and cryptocurrency trading needed to be banned completely in the future.

He said:

“I always believe that speculation in cryptocurrency and ICO is not the direction of financial development and must be resolutely banned.”

One of the main difficulties in regulating such pyramid schemes is that there is no clear supervision division in the current regulatory framework. Chen thinks that in order to crack down on the ICO scams and cryptocurrency speculations, all regulators including China’s banking and insurance regulatory commission, China securities regulatory commission, public security organization and Internet and cultural authorities should work together.

ALSO READ :  Hackers Transfer $38.7 Million Out Of $1.3Billion Worth Of Bitcoin From Wallets Connected To The 2016 Hack Of Bitfinex

Though Chen thought that cryptocurrency speculation was illegal, he pointed out that digital assets trading was a different story. He said that digital assets were tradable with fiat currencies.

He added:

“As for digital currency transactions, I believe that the supervision of various departments in the country will become more and more strict, leaving no market for transactions. For example, Banks and formal payment institutions will be prohibited from providing channels for digital currency transactions. Private deals may continue, but they will not be mainstream.”

Likewise, according to Chen, China has been preparing for DCEP (Digital Currency Electronic Payment) ever since 2015. He explained that DCEP’s direct peg to the Renminbi was an important national strategy for China.

Thus, he added concluded:

“We must be ahead of the rest of the world, at least technologically. Only in this way canthe RMB take the initiative in the future international economic development.”

Source: |


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.