Chinese regulators unite forces to crack down on crypto



The Chinese government is getting more serious about cracking down on the cryptocurrency industry as state authorities are bringing forces to combat crypto operations in the country.

The Peopleā€™s Bank of China (PBoC) officially announced on Friday a set of new measures to fight against crypto adoption in China, including promoting stronger inter-departmental coordination in cracking down crypto activity.

10 Chinese state authorities, including the PBoC, the Cyberspace Administration of China and the Ministry of Public Security, have established a ā€œcoordination mechanismā€ to prevent financial players from participating in any cryptocurrency transactions. According to the announcement, the involved authorities and institutions have completed significant improvements to crypto monitoring platforms to identify illegal cryptocurrency transactions efficiently.

The PBoC stressed a wide number of government agencies was now going to be cracking down on crypto closely in compliance with the Chinese laws:

ā€œFinancial management departments, cybersecurity and information departments, telecommunications departments, public security departments, and market supervision departments work closely together to cut off payment channels, dispose of relevant websites and mobile applications in accordance with the law.ā€

Related: China to ā€˜maintain a high-pressure situationā€™ on crypto, official says

Wen Xinxiang, director of the payment and settlement department at the Peopleā€™s Bank of China, expressed concerns over the growing popularity of cryptocurrencies and stablecoins, calling for more measures for the traditional financial system to compete with the industry.

The latest moves by the Chinese government further reaffirm Chinaā€™s anti-crypto stance as local authorities have already shut down multiple mining farms and suspended crypto trading this year. Chinese regulators had imposed similar crypto restrictions before, banning crypto exchanges from providing services in China back in 2017. Shortly after China enforced the crypto exchange ban, Bitcoin reached $20,000 for the first time in December 2017.



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