PBOC to Maintain High Regulatory Pressure on Crypto Trading for the Rest of 2021
China's central bank held a meeting to discuss work priorities for the second half of the year. It vowed to continue to put high regulatory pressure on virtual currency trading in the second half of the year.
Severe cracking down on illegal activities in virtual currency was reportedly listed as one of its work results in the first half of the year. Local publication Wu Blockchain noted,
“The meeting emphasized that the crackdown on crypto in the second half of the year is to “maintain” rather than strengthen, which may imply that there will be no big new policies, but the continuation of current policies.”
In H1 2021, the People’s Bank of China cracked down on trading and mining cryptocurrencies over heightened concerns over fraud, money laundering, and excessive energy usage. Now, the central bank will continue to maintain these regulatory measures against them in the future.
However, as we reported, these measures were not limited to the crypto industry and imposed on other sectors such as the Internet. The central bank set a series of regulatory actions targeting the tech sector’s monopoly, such as Ant Group Co., Tencent, and others over the past year as well.
Besides cracking down on the illegal capacity of virtual currency, the PBOC also decided at the meeting that it will firmly implement the decisions and arrangements made by the Central Committee and the State Council on anti-monopoly.
While preventing the disorderly expansion of capital, the central bank also proposed promoting financial business standards. It will also supervise these financial platform companies to ensure they fully implement the relevant requirements under regulations, as per the statement.
The apex bank further said that it would accelerate its work to create a financial stability law, which Deputy Governor Liu Guiping proposed in March.
The PBOC reiterated that its prudent monetary policy would be reasonable, appropriate, and flexible. While vowing to implement a good “cross-cyclical” policy design, which means policy support will be provided for a long time, the central bank said it would avoid overstimulating the economy.
“Now that final reg fud is out.. time to send it to the mooon,” commented Molly of eGirl Capital.