China’s Central Bank Governor Issues Stringent Regulatory Requirements for Crypto Sector
Pan Gongsheng is the newly appointed governor of the Chinese Central Bank. He recently reiterated the austere stance on the cryptocurrency sector. During the latest statement, he talked about the importance of maintaining financial stability within the nation.
On this account, he retained that he is planning to crack down on speculative virtual currency trade and impose a ban on illicit fund-raising and money laundering operations.
Chinese media reports shared the stance of the governor who talked about bringing all financial activities under the umbrella of regulated and licensed firms.
His statement indicated a renewed emphasis on regulatory compliance for virtual asset services providers. These policies are part of the national plan to boost the economic standing of China during a time characterized by global uncertainty. The governors also issued a report on the matter that covered the financial steps of the State Council.
He presented the report during the sixth meeting of Congress for Standing Committee. Pan told the highest legislative body of the nation that financial services providers should not operate without a proper license issued from a relevant regulator.
5 Points Plan on Financial Stability
In the current economic context, all eyes are set on the newly appointed governor Gongsheng. He shared five-point plan to mitigate financial risks during his Congress presentation. His plan also addressed the matter of fake gold exchanges and third-party asset management firms and included solutions to address associated risks.
At the same time, the report dealt with streamlining virtual currency transactions taking place on a local scale. These changes indicate the policy of China in regulating the financial sector.
Meanwhile, China also adopted various regulatory changes to gain greater control of the financial markets. On this account, the government introduced new and stricter monetary policies and amended market practices on the same scale.
At the same time, China also introduced the digitized version of its legal tender namely Digital Currency Electronic Payment (DCEP). The digitized legal tender is also part of the overall strategy to strengthen the Chinese economy.
At present, China is tightening policies around crypto trading and mining activities within its jurisdiction.
Precise Economic Policies
During his recent presentation, Gongsheng shared the aim of the Central Bank on bolstering native demand. At the same time, PBOC will pave the way for financial enterprises to slash down lending rates as a way to lessen operating costs for individuals and businesses.
The report is now published on the official website of PBOC. The governor retained that the policies are directed towards activating capital markets and resurge confidence among investors.
He further talked about bringing macro policies to solidify financial supervision, mitigate risks, and promote sustainable economic development.
China recently issued an economic date for third-quarter of 2023. The report indicates growth rate exceeding expectations for the third-quarter in addition surge in consumption and industrial activities.
The governor reiterated his goal to keep Yuan stable and prevent abnormal fluctuations in terms of international transactions and foreign exchange market flows.
Furthermore, the report also talked about containing the risk of bonds issued by real estate enterprises. These policies in turn will bring more certainty for stocks, bonds, and foreign exchange markets in the country.
