Central Bank of China updates risk prevention document for cryptocurrencies

The Central Office of the People's Bank of China in Shanghai issued an update on its document on risk prevention measures for cryptocurrency transactions, and the initial offers of currencies (ICO) on Tuesday 18 September.

"In recent years, speculation related to the virtual currency has prevailed, prices have skyrocketed and risks have quickly accumulated, which has seriously disrupted the economic, financial and social order," the bank proclaimed.

As a result, the bank emphasized that the "global share of transactions in domestic virtual currency has fallen from the initial 90% to less than 5%." However, through monitoring and monitoring of the cryptographic exchange activities that left the country, the bank found:

"Some virtual currency trading platforms originally established in China have gone, registered abroad and still provide service to domestic users"

In addition, the bank noted that other methods of issuing tokens have emerged. "Another problem is the initial offers of currency, forks and changes in addition to the cybernetic currencies that are promoted under the guise of a collaborative economy," Yical Global quoted the bank as saying.

In response to the consequences of closing cryptocurrency exchanges in the country, the People's Bank of China has deployed the leading national financial risk remediation Group on the Internet and has adopted a series of specific measures.

The first is to "strengthen the monitoring of virtual currency trading platforms" that provide commercial services to domestic users abroad. The publication details:

"China's central bank blocked 124 cryptocurrency trading platforms targeting Chinese residents while using servers abroad to bypass local laws."

The second is to strengthen the cleanup of payment and settlement services related to encryption, including efforts to "guide relevant payment institutions to strengthen the management of payment channels, identify customers and provide risk warnings, establish a supervision and inspection mechanism and stop paying services for suspicious transactions. "

The bank revealed :

Currently, the relevant payment channels have been verified and around 3,000 accounts dedicated to virtual currency transactions have been closed.

The third measure described by the PBoC refers to ICOs and similar products. The bank aims to strengthen the research and evaluation of these instruments to "fight early ... prevent problems ... and transmit clearer regulatory signals to the market". As part of this plan, the bank wants to increase censorship efforts, including "the elimination of national ICO and websites related to virtual currency transactions."

In conclusion, the central bank reminds consumers and investors to increase awareness of the risks of ICOs. The bank also urges citizens to report suspicions of activities related to cryptocurrencies and ICOs to the authorities.

Source: Bitcoin News