China’s central bank has reaffirmed its stance on crypto trading, admitting that it will continue to keep pressure on its recent clampdown.
China’s clampdown on the crypto industry looks set to continue following reports that the country’s central bank looks set to continue its strict stance.
The People’s Bank of China is also set to assist financial platform companies in rectifying their practices according to regulations. Policymakers continue to clamp down on cryptocurrency mining and trading within the country. The country has previously cited issues related to mining energy usage, fraud, and money laundering as some of the key issues related to the crypto clampdown.
The statement from the People’s Bank of China also stated that it would act to prevent major financial risks while reducing the number of high-risk financial institutions in key provinces. The bank is also looking at working on creating a financial stability law according to Deputy Governor Liu Guiping.
China’s strict crypto clampdown
China has taken some of the toughest measures against the crypto industry. The country earlier this year announced that it would be cracking down on bitcoin mining within the country. The country also prohibited financial institutions from using crypto services. Illegal mining as well as supply shortages of electricity have seen China accelerate its ban on crypto mining in recent months.
The crackdown has seen miners and mining suppliers pull out of the country. Cryptocurrency exchange Huobi also recently announced it would be dissolving its Beijing entity due to the ongoing enforcement from China.
CBDC adoption continues
While China is clamping down on the crypto industry, its Central Bank Digital Currency (CBDC) has been slowly gaining traction within the country. The CBDC has expanded across the country as it continues to plan increased usage by the country.
Mu Changchun, the head of the central bank’s digital currency research institute of China, has stated that the Digital Yuan offers the highest privacy protection. He stated, “The protection of users’ privacy by e-CNY is at the highest level among all of the existing payment tools,”
Other countries, like Japan, France, and Australia, are also working on CBDCs. India is also looking to begin its own efforts, although it seems torn on how to properly regulate the crypto market as a whole.