China’s Global Cryptocurrency Share Plunges to 10%, Says PBoC

The People’s Bank of China told an annual work conference that it would maintain its crackdown on virtual currency transactions

China’s trade in cryptocurrency trading plunged to 10% of the global total – from 90% in 2021 – as part of the government’s efforts to reduce domestic financial risks, the central bank said.

The People’s Bank of China (PBoC), told an annual business conference that it would maintain its crackdown on virtual currency transactions.

Authorities have stepped up their efforts to clamp down on cryptocurrency in recent years.

Last year, China moved to ban bitcoin mining after banning cryptocurrency exchanges in 2017. Most mining operations have moved overseas, particularly to Central Asia and the United States. -United.

“We have effectively dampened the hype of domestic virtual currency transactions,” the bank said in its review.

Crypto is part of what the PBoC has called “internet financial chaos,” along with peer-to-peer (P2P) lending platforms and unlicensed providers of digital financial products.

“All P2P online lending platforms have withdrawn from operations, and the outstanding loan balance has increased from 1.2 trillion yuan ($190 billion) to 490 billion yuan,” the bank said.

Over the past five years, a total of 25,000 cases of illegal fundraising have been investigated and dealt with, the PBoC said.

Last month, the Supreme People’s Court issued a revised criminal judicial interpretation for illegal fundraising, adding cryptocurrency trading as a new potentially criminal act.

“All financial activities of internet platform companies will be placed under surveillance, and business cooperation between licensed institutions and internet platform companies will be regulated,” he added.

“Anti-financial monopoly and anti-unfair competition regulations must be strengthened and market order must be maintained.”

The PBoC said its authority would be strengthened in other areas. This would promote the steady and healthy development of financial markets, including the gold market, interbank derivatives and asset-backed securities, according to the statement.

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george russell

George Russell is a Hong Kong-based freelance writer and editor who has lived in Asia since 1996. His work has appeared in the Financial Times, Wall Street Journal, Bloomberg, New York Post, Variety, Forbes, and South China Morning Post. . .

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