Chinese Central Bank urges crackdown on cryptocurrencies

Chinese Central Bank urges crackdown on cryptocurrencies

The Central Bank of China has issued a new warning indicating that cryptocurrencies remain banned and heavily repressed in the country, indicating that nothing has changed since last year.

In 2021, the cryptocurrency market considered China to be one of the largest markets by trading and mining volume, with companies in the country. Although it was forbidden to have cryptocurrency exchanges on the Yuan pair, the companies still offered currency exchange to the Chinese population.

However, amid a sudden crackdown, Chinese authorities have banned cryptocurrency trading from the country, banning them. It’s worth noting that owning a cryptocurrency is not illegal, but selling it on exchanges or P2P can be a practice that leads to jail time and a fine.

Chinese Central Bank warns crackdown on cryptocurrencies is strong

Last Tuesday (1), Chinese officials met to discuss various aspects of the local economy and discuss what could be improved in the future. One of the points noted by those present was the need to reform and open up the Chinese financial market.

For this to happen, it is important to improve the securities legal system and to optimize its institutional environment. Eliminating defaults in the financial market is also a guideline for improvement, according to the Chinese authorities.

One of the areas in need of improvement is trading in the gold market, an asset that has served as a capital protector for centuries, as well as interbank and asset-backed derivatives.

However, the Central Bank of China warned that this will require cryptocurrency trading to continue under strong repression, as well as the self-inspection work of internet platforms operating in the country.

“Work with relevant departments to continue to promote the work of self-inspection and rectification of the Internet platform’s financial business activities, and continue to act under high pressure against virtual currency trading speculation.”

That is, China maintains its stance to claim that cryptocurrencies are speculation and is fighting for its population not to interact with this technology.

Russia’s most important partner

China is today Russia’s largest partner power in the international market and maintains its neutral position in the conflict involving Ukraine. And there has been much speculation that Russia could be using cryptocurrencies to evade sanctions.

However, as its main partner country does not like the technology, it is possible that this will make it difficult for Russia to have liquidity in the cryptocurrency market and thus avoid sanctions.

In fact, last February, China took another step in its effort to completely remove cryptocurrencies from the country.

Source: Live Coins