Chinese regulators are joining forces to crack down on cryptocurrencies

Chinese regulators are joining forces to crack down on cryptocurrencies
China’s central bank is establishing a “coordination mechanism” with state agencies to continue the fight against cryptocurrencies.

The Chinese government is getting more and more serious about cracking down on the cryptocurrency industry as state authorities put in force to fight crypto operations in the country.

The People’s Bank of China (PBoC) officially announced on Friday a set of new measures to combat China’s cryptocurrency adoption, including promoting stronger inter-departmental coordination in fighting crypto activity.

10 Chinese state authorities, including the PRC, the Chinese Cyberspace Administration and the Ministry of Public Security, have established a “coordination mechanism” to prevent financial players from participating in any cryptocurrency transactions. As announced, the authorities and institutions involved have made significant improvements to the cryptocurrency monitoring platforms to effectively identify illegal cryptocurrency transactions.

The PBOC stressed that many government agencies will now strictly crack down on cryptocurrencies in line with Chinese regulations:

“Financial management, cybersecurity and information management, telecommunications, public security and market surveillance departments work closely together to cut off payment channels, to dispose of the appropriate internet services and mobile applications in accordance with the law.”

Wen Xinxiang, director of payments and settlements at People’s Bank of China, expressed concern about the growing popularity of cryptocurrencies and stable coins, calling for more funding to allow the traditional financial system to compete with the industry.

The recent moves by the Chinese government further confirm China’s stance against cryptocurrencies, as local authorities have already closed many Bitcoin mines and suspended cryptocurrency trading this year.

Chinese regulators had previously imposed similar cryptocurrency restrictions, banning exchanges from providing services in China in 2017. Shortly after China introduced a cryptocurrency trading ban, Bitcoin first hit $ 20,000 in December 2017, so the current Bitcoin banning could increase its price to another significant level of $ 100,000.

28-09-2021, Mr Advice TEAM

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