The former chair of the China Securities Regulator Commission while speaking at the 19th Pushan Lectures of China Finance 40 Forum, said China is facing a digital economy transformation and needs to embrace the right regulations for the fast-growing crypto market. During this event, several officials discussed the lessons learned from the 30-year development of China’s capital market. According to news reports, the former official said that boundaries of some products and services in the digital capital market are becoming blurry, and the current laws and regulations can not keep up with them.
“There is an urgent need to embrace digital reform.”
The former official of the China Securities Regulatory Commission said that there is an urgent need to embrace digital reform. He said that the development of the digital capital market faces the problem of organizational change. He added that the most typical, such as the cryptocurrency exchange, is bound to happen in the future. The former chair noted that getting the balance wrong attempting to protect investors and consumers could potentially lead to major problems.
China to become the first major nation to issue its CBDC.
The People’s Bank of China has been working on its centralized digital currency from the last 5 to 6 years and is now very close to issuing it to the general public. China has banned Initial Coin Offerings in the country and has strict regulations around the crypto market. The country’s central bank is currently testing the national digital currency dubbed as DCEP (Digital Currency Electronic Payment) in four cities. Xiao said that the country must adhere to the principles of openness, inclusiveness, sharing, and fairness in the development of the digital capital market. They should actively embrace new technologies and prudently innovate business models and promote data connectivity and create a fair market environment.”
Several other countries are also researching and working on their central bank digital currencies.