Vice President of the People's Bank of China asks to implement new regulations on cryptocurrencies
According to published reports, a senior official of the People's Bank of China has made the request to the institution to apply much broader restrictions in relation to the exchange services that operate in the country.
Pan Gongsheng, who currently holds the position of vice president at the People's Bank of China, said that to avoid the risks now present in the markets, the government would have to apply a much stricter regulation to definitively end all activities and services related to the cryptocurrency trade. This was reported by Reuters news agency, citing precisely a document that circulated behind closed doors within the institution that had access.
The document in question is a kind of memorandum resulting from a meeting between legislators, government representatives and regulators of Internet services held last week, in which Gongsheng expressed his opinion and added that local and national authorities should focus in the exchange platforms for cryptocurrencies and in Bitcoin services industries in general. The senior official also stressed the need for people and institutions that provide settlement and compensation services, as well as suppliers and operators of software for the storage of digital currencies are also protected by the prohibitions and regulations.
In itself, the published memorandum shows that Gongsheng is requesting the collaboration of the authorities to investigate, and Internet regulators block any national and international platform that allows investors in China to trade with digital currencies of any kind.
According to information published by the Bloomberg news agency, the only ones that were not alluded to within the measures are people who carry out small transactions in Bitcoin or in another cryptocurrency, which would not be considered activities that attempt large-scale against the economy of the Asian country.
While worrying about the fact that digital currencies and other financial mechanisms are used for capital flight from China, Gongsheng also asked the authorities that remittance and money transfer services be investigated and regulated with great caution. The official let see his total rejection towards this conglomerate of financial activities when he expounded textually:
"Pseudo-financial innovations that have no relation to the real economy should not be supported in any way. "
These new actions are a hardening of the position of the Asian country against the use of digital currencies, since at the beginning of 2017 the country's central bank imposed restrictions that forced the main Chinese exchange services to cease operations in national territory . For the month of September of the same year, the People's Bank of China announced the prohibition of the initial presale campaigns of new digital currencies (ICO) because they are considered risky for investors.
Recently, the measures adopted by some provinces in the country have generated much uncertainty among operators of mining farms, who have already been seeking to establish themselves in other latitudes such as Switzerland or Canada in the face of fear of an eventual suspension of mining within the territory.
