Last year the Chinese government cracked down on initial coin offerings (ICO) and stopped all domestic cryptocurrency exchanges from dealing with the renminbi. According to local reports and the central bank’s recent ‘2018 agenda,’ the People’s Bank of China aims to finish what it started in 2017 by “rectifying” all virtual currency operations, introducing new “reforms and supervision.”
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The PBOC Aims to Strengthen Virtual Currency Supervision
Ever since last year, China’s central bank has had it out for cryptocurrencies and digital asset exchanges. The People’s Bank of China (PBOC) first cracked down on ICO projects by making them illegal, but then soon after the bank made domestic cryptocurrency exchanges close down their operations. It’s been well over a year since these events occurred, but people continue to follow the PBOC’s actions to see if the government will allow digital currency exchanges to reopen. So far it doesn’t look positive, additionally, there have been indicators pointing to the bank possibly creating its own central bank digital token.
Just last week the PBOC revealed it will be taking further action against cryptocurrency operations including multi-level-marketing schemes. According to the vice governor of PBOC, Fan Yifei, the central bank is pursuing research towards its own digital renminbi.
“The rectification of all types of virtual currencies will be carried out,” the vice governor states.
First, we will intensify reforms and innovations to promote the central bank’s digital currency research and development; Second, the bank must strengthen supervision and rectify all types of virtual currencies.
It’s been well over a year since ICOs and cryptocurrency exchanges were banned in China and the PBOC says it plans to continue to rectify the crypto-activity in
