China’s central bank has completed its crackdown on digital currencies, according to its latest report. The People’s Bank of China (PBoC) said it now regulates the sector ‘routinely.’ In its 2021 Financial Stability Report, the PBoC said it has been cracking down on a number of sectors that had caused concern, but it has now resolved most of the issues it was going after.
PBoC ends its crackdown on cryptocurrencies.
“The battle to prevent and resolve major financial risks has achieved important phased results,” reads the report, which was published in Chinese. The report then went on to list the specific areas the central bank had been cracking on, stating, “Online asset management, equity crowdfunding, Internet insurance, virtual currency trading, internet foreign exchange trading, and fields have basically completed the rectification work and have been transferred to normalized supervision.” The PBoC has cracked down harder than ever before in the cryptocurrency industry in the last year.
China's central bank: the crackdown on virtual currency transactions has basically been completed and has been transferred to normalized supervision. https://t.co/T3Pa28BS9R pic.twitter.com/HMzdhDOJ8r
— Wu Blockchain (@WuBlockchain) September 3, 2021
The PBoC has also ramped up its efforts against digital currencies.
One of the sectors it has focused on is cryptocurrency mining, culminating in Chinese miners having to relocate to other countries such as Kazakhstan, Russia, and even the U.S. President Xi Jinping’s government has blamed these miners for contributing greatly to China’s carbon footprint at a time when the country is making concerted efforts to reduce it. The PBoC has also ramped up its efforts against digital currencies. Earlier, it urged commercial banks and mobile and Internet money processors such as AliPay to crack down harder on cryptocurrencies. It also emphasized over-the-counter platforms, claiming that they were allowing Chinese residents to circumvent local regulations.