The People’s Bank of China has vowed to maintain heavy regulatory pressure on cryptocurrency trading and speculation after escalating its clampdown in the sector earlier this year, BNN Bloomberg reported. The central bank will also supervise financial platform companies to rectify their practices according to regulations, it said in a statement on Saturday. Policymakers met on Friday to discuss work priorities for the second half of the year.
China continues to crack down on cryptocurrencies.
China had launched its most intense crackdown on crypto trading and mining since 2017 in recent months after a surge in Bitcoin and other tokens heightened authorities’ concerns over risks of fraud, money laundering, and excessive energy usage. The Chinese government also imposed a series of regulatory actions targeting monopolistic behavior at online payment platforms such as Ant Group Co. over the past year. As a result of the ongoing crackdown on the crypto market, several crypto mining and trading companies moved out of China. As reported earlier, Huobi exchange moved dissolved its Chinese subsidiary.
The central bank will act to prevent major financial risks.
According to the Bloomberg report, the central bank will act to prevent major financial risks and push to lower the number of high-risk financial institutions in key provinces, according to the statement. PBoC will also accelerate its work to create a financial stability law, which Deputy Governor Liu Guiping proposed earlier in March. The central bank reiterated that its prudent monetary policy would be flexible, targeted, reasonable, and appropriate. It vowed to implement a good “cross-cyclical” policy design. A term widely interpreted to mean authorities will use a longer time frame when considering policy support and avoid overstimulating the economy.