China is officially against the emergence of cryptos. In a recent detailed economic statement, the Middle Kingdom reaffirmed this position by announcing its determination to toughen its tone on this issue.
Chinese authorities determined to muzzle the crypto industry
On Saturday October 21, the governor of the Central Bank of China, Pan Gongsheng, spoke about crypto activities. The latter do not have legal rights in the country and this policy will not change soon.
In any case, this is the position that China has decided to adopt while also hardening its strategy in this area. A detailed statement presented by the Chinese economic authority shows that the Asian giant is uncompromising against speculative activities linked to cryptos.
But the country does not intend to stop there. Indeed, China intends to carry out a rigorous campaign against illicit fundraising and money laundering in the digital assets sector.
This repressive policy, decided by Beijing, pursues a single objective. That of strengthening the financial stability and economic security of the country. What cryptos would hinder according to the Chinese authorities.
At heart, Governor Pan Gongsheng’s announcements reflect China’s unwavering commitment to ensuring the legality and safety of its financial sector. Particularly in the crypto space.
A headlong escape?
It must be said that these statements by the governor of the Central Bank of China come at a very specific time. A context marked by a certain intensification of repressive measures against crypto firms.
These measures mainly concern miners and exchanges. These two vital segments of the crypto ecosystem are deemed illegal by Chinese regulatory authorities. A position adopted by the State since 2017, by banning national crypto exchanges.
Despite this prohibition, Chinese investors continue to invest in crypto. They carry out this operation through foreign platforms or, failing that, through peer-to-peer transactions.
Ultimately, China’s tightening of its policy towards cryptos could be seen as a headlong rush. As we can see, its stated desire to mitigate financial risks and to fight against illicit activities in no way hinders investors’ enthusiasm for these assets.
Recently, we saw a signal of a possible change in the situation when a Chinese court recognized cryptos as legal goods. It might take a while longer to see real positive changes in this direction.
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