A recent regulatory update by People Bank of China’s(PBOC) Shanghai Head office has affirmed that the bank will continue to strengthen regulation and control and clamp down crypto trading.
No Virtual Currency Business To Exist In China
The Shanghai Financial Stability Joint Conference Office and the Shanghai Headquarters of the People’s Bank of China going forward will continuously monitor the virtual currency business activities within the jurisdiction. Once the activities are discovered, they will be put to an end with immediate effect.
The announcement further states that “Investors should be scrupulous and should not mix blockchain with virtual currencies”. Furthermore, the announcement mentions that there are multiple risks involved with virtual currencies. These include issuance, financing and trading, including false asset risk, business failure risk and investment speculation risk.
If in case an investor discovers any form of virtual currency business activities taking place they may report it to the regulatory authorities. Most importantly, those suspected of being involved in virtual currencies in any manner may be sent to the public security. The latter is the principal police and security authority of the People’s Republic of China.
Rise In “ Crypto Adoption” Speculations
In China’s pursuits of promoting blockchain technology, speculations relating to virtual currencies started rising. For curbing virtual currency-related activities in Shanghai, the regulators will be launching a drive.
The announcement mentions,
Relevant financing entities through the illegal sale, circulation of tokens, raising funds to investors or bitcoin, Ethereum and other virtual currency, which is essentially unauthorised illegal public financing, suspected of illegal sale of tokens, illegal issuance of securities and illegal fund-raising, financial fraud, pyramid schemes and other illegal crimes have seriously disrupted the economic and financial order.
PBoC To Adopt New Measures To Curb Use of Cryptos
Back in 2017, the People’s Bank of China and the other seven ministries and commissions issued the “Announcement on Preventing the Risk of Subsidy Issuance Financing” clearing up the ICO and virtual currency trading venue. Since then the supervision has strengthened and the efforts to eliminate virtual currencies in China continue full throttle.
The announcement further states that the Shanghai Financial Stability Joint Conference Office and the Shanghai Headquarters of the People’s Bank of China will continue to adopt monitoring measures such as interviews, inspections, and bans on the monitored entities involved in virtual currency activities to resolve related risks in a timely manner.
While blockchain is here to stay, China is still not ready for crypto. Will China adopt crypto in the near future? Let us know, what you think in the comments below!
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Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.