People’s Bank of China Governor Vows to Curb Crypto Speculation

The new governor of China’s central bank has promised to stop speculation associated with cryptocurrency transactions in the country. Pan Gongsheng made the vow in a report detailing measures to maintain the stability of the Chinese financial market and prevent risks.

PBOC Prepares to Crack Down on Cryptocurrency Speculation and Money Laundering

The People’s Bank of China (PBOC) must adhere to the principle of seeking progress while maintaining stability, its Governor, Pan Gongsheng, said in his “Report on the Financial Work of the State Council” delivered at a Saturday meeting of the Standing Committee of the 14th National People’s Congress.

The document presents the monetary authority’s response to changes in the economic situation and reveals its intentions to boost confidence in the country’s financial system, prevent risks, expand domestic demand, and promote the continued economic recovery.

The report, quoted by Chinese media, marks several key areas the PBOC plans to focus on. These include implementing prudent monetary policy, strengthening and improve financial supervision, deepening financial reform, and maintaining the stable operation of financial markets.

As part of efforts to prevent and resolve hidden financial risks, China’s central bank vows to “severely crack down” on illegal financial activities and illegal fundraising as well as “resolutely curb the speculation of domestic virtual currency transactions.”

Furthermore, the regulator will continue to intensify the investigation and handling of money laundering cases, according to the report presented by its recently appointed governor. Pan Gongsheng assumed the post at the helm of PBOC in July of this year.

The top executive also emphasized the bank should guide and stabilize financial market behavior and expectations while taking timely measures in accordance with market conditions. He insisted that the PBOC should work to prevent risk contagion in China’s stock, bond, and foreign exchange markets.

China cracked down on crypto-related activities, most notably mining, of which it was a major hotspot, in 2021. In parallel, the government in Beijing has been promoting the use of the PBOC-issued central bank digital currency (CBDC), the digital yuan, with trials already covering 26 cities.

What measures do you think will the central bank of China take against crypto activities now? Tell us in the comments section below.

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