The People's Bank of China (PBOC), China's central bank, has published its latest financial stability report, which devotes a separate section to cryptocurrencies for the first time. This is the first time the bank has put such a big emphasis on the emerging field of digital currencies.
The report analyzes the risks and challenges posed by crypto assets for the financial system and regulatory responses to them.
The new cryptocurrency division emphasizes the principle of “same business, same risks, same control.” This approach aims to reduce data gaps, reduce fragmentation and eliminate regulatory arbitrage in the crypto asset market, according to the report.
The report also includes a detailed paragraph about the Financial Stability Board (FSB)'s cryptocurrency regulation.
In the published report, in a section where the risks of cryptocurrencies were mentioned, the FTX collapse and the collapse of the Terra (LUNA) ecosystem were also mentioned.
As part of its efforts to prevent and address hidden financial risks, the bank said in the document “Report on the Financial Work of the State Council” published in October that it would “seriously prevent” illegal financial activities and illegal fundraising and “resolutely suppress the speculation of local virtual currency transactions.” He promised to prevent it in some way.
*This is not investment advice.
