Bitcoin and other cryptocurrencies are not legal tender in the People’s Republic of China and do not have real value, said Yin Yupin, deputy head of the department safeguarding the rights and interests of consumers of financial services at the People’s Bank of China (PBoC). The newspaper ‘Renmin Ribao’ reported.
According to Yin, transactions with digital assets are “pure investment speculation.” He noted that authorities need to raise public awareness so that people consciously avoid cryptocurrencies in the pursuit of “protecting their wallets”.
In response to a possible revival of Bitcoin trading, the PBoC will work with other state agencies to identify overseas exchanges and domestic traders who violate regulators’ ban.
In particular, the central bank is cooperating with the China Banking and Insurance Regulatory Commission. Together they “have done a lot of work” on building a monitoring and detection system to identify illicit operations, the publication notes.
Yin said that in the short term the PBoC intends to curb cryptocurrency operations while maintaining pressure on the industry. He also reminded citizens of their duty to report illegal activity in this area to law enforcement.
Earlier the PBoC said it would continue regulatory pressure on crypto-trading. One of the regulator’s main tasks is to strengthen oversight of online financial platforms and to crack down on illicit operations with virtual currencies.
In July deputy regulator Fang Yifei stated that Bitcoin and stablecoins have become speculative instruments, threatening the safety of the financial system and social stability.
Recall, in May the State Councilor Liu He said about measures in relation to Bitcoin mining and trading.
In June the PBoC held a meeting with representatives of financial institutions and prohibited them from participating in cryptocurrency transactions.
In August, the regulator’s Shenzhen branch “took action to restore order and make adjustments” to the operations of 11 companies suspected of illicit operations with digital assets.
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