In an effort to protect the yuan (RMB), the People's Bank of China said it will apply strict measures to cryptocurrencies.
And while the statement published on the Chinese central bank's website March 29 offered no specifics on policies against either crypto, virtual or digital currencies, the deputy director of the PBoC, Fan Yifei, did outline the steps the bank will take to keep the yuan strong.
Fan also threw his support behind the development of a digital currency that is regulated by the Chinese government at this year's national video conference that centered on both the achievements and challenges that the Chinese economy faces. He said among the objectives is to intensify reform and innovation while promoting research and design of the central bank's own digital currency.
Fan said another of the central bank's objectives is to tighten both internal management and external supervision while strengthening quality contrail of the yuan. It will also undertake rectification of an assortment of virtual currency types.
The Chinese central bank is also taking measure to look into other related projects that could weaken the nation's financial health and well-being. In January, China's Ministry of Public Security said it would crack down on cryptocurrency pyramid schemes.
What has not changed as a result of the statement is the Chinese government's strict policy on decentralized payment types. It has added foreign and domestic digital asset trading platforms to its Great Firewall and also prohibits initial coin offerings. Cryptocurrency websites are also banned in the country and cryptocurrency exchanges have had their accounts frozen. This has led cryptocurrency traders to Hong Kong and Japan, which have easier trading regulations.
It has also been reported that the Minister y of Public Security has increased its internet monitoring of foreign cryptocurrency exchanges that are serving investors in China itself.
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