Chinese Regulator Urges Authorities To Prevent Public Usage of Cryptos
December 29, 2019
Chinese Regulator Urges Authorities To Prevent Public Usage of Cryptos
December 29, 2019

Securities regulator in China has urged authorities in Beijing to carry out relevant actions in preventing public usage of cryptocurrencies.

On Dec. 27 an announcement by China Securities Regulatory Commission (CSRC) on its site pointed out the risks of digital currencies such as:

  • Escalation of crypto trading activities
  • Digital currency mortgage provision
  • Introduction of zero-interest loans
  • As well as serious violations of the People’s Bank of China (PBoC) provisions

Signatory to the announcement were four Beijing-local regulators. 

A warning was issued by the regulators calling out local authorities to combat crypto-related illegal activities in Beijing. The warning highlights Chinese governments stand towards cryptocurrencies while stating both legal entities and individuals cannot carry out virtual currency sales, investments or transactions, nor engage domestic or foreign agents to trade cryptocurrencies.

China’s Negative Stance Towards Cryptos

In November, China’s central bank, The People’s Bank of China announced to pilot a restriction on large-scale cash transactions in three different regions across the country.

ALSO READ :  Bank Of China To Expand Fintech Regulatory Pilot Projects To Six More Cities

PBoC says that large scale cash transactions facilitate illegal criminal activities such as corruption, tax evasion, and money laundering:

  • Hebei Province
  • Zhejiang Province
  • Shenzhen City.

PBoC said that large scale cash transactions facilitate illegal criminal activities such as corruption, tax evasion, and money laundering. In the same month, China’s tech capital of Shenzhen issued a warning against illegal activities related to cryptocurrencies.

A local media claims that China should embrace blockchain technology but not “speculate” about cryptocurrencies such as Bitcoin. The local media, The People’s Daily, that reported is a publication under the direct control of the ruling political power, the Communist Party of China.

Meanwhile, PBoC’s deputy director Mu Changchun said that the digital form of the yuan will be different from Bitcoin and stablecoins.


Source: Cointelegraph | CSRC


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Jafrin Ahmed

Crypto newbie passionate about creating resourceful content on blockchain technology, cryptocurrencies and decentralized apps.
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