2023-03-31

Vice President of the People's Bank of China, Xuan Changneng, said that China will strengthen regulatory mechanisms that are compatible with the digital economy, because new technologies, especially new financial forms, should not be blindly accepted and recognized. Lack of regulation will exacerbate irrational market behavior.

In recent years, Chinese regulatory authorities have strengthened their scrutiny of the fintech industry to prevent the outbreak of financial risks. Since the end of 2020, the Chinese government has strengthened restrictions on the financial sector of online platform enterprises, seeking to balance Financial innovation and security.

Based on the surging news and Reuters reports, Xuan Changneng said at the round table of "financial infrastructure and financial services in the digital era" at the 2023 annual meeting of the Boao Forum for Asia on Friday (March 31) that from the current actual operation, the emphasis on decentralized Cryptocurrency has not solved the problems of credit currency.

He added that the exchange of Cryptocurrency with Fiat money and leveraged transactions involved in the transaction process are largely controlled by the trading platform, issuer or dealer, and Market maker, so this is a very centralized process in itself, with many risks hidden. The cyclical fluctuations, micro credit risk and Liquidity risk mismatch of Cryptocurrency still exist.

Xuan Changneng said that there is a lack of effective supervision in this field. Market manipulation, fraud, abuse of Related party transaction, misappropriation of customer assets or operation of mixing customer assets with own assets have occurred repeatedly. Recently, there have also been some lightning risks. FTX, security and other platforms have been investigated by regulators in the United States.

Vice President of the People's Bank of China, Xuan Changneng, said that China will strengthen regulatory mechanisms that are compatible with the digital economy, because new technologies, especially new financial forms, should not be blindly accepted and recognized. Lack of regulation will exacerbate irrational market behavior.

In recent years, Chinese regulatory authorities have strengthened their scrutiny of the fintech industry to prevent the outbreak of financial risks. Since the end of 2020, the Chinese government has strengthened restrictions on the financial sector of online platform enterprises, seeking to balance Financial innovation and security.

Based on the surging news and Reuters reports, Xuan Changneng said at the round table of "financial infrastructure and financial services in the digital era" at the 2023 annual meeting of the Boao Forum for Asia on Friday (March 31) that from the current actual operation, the emphasis on decentralized Cryptocurrency has not solved the problems of credit currency.

Later in 2021, Chinese regulators banned Cryptocurrency trading and mining because of concerns that Cryptocurrency speculation might disrupt the country's economic and financial order.

Vice President of the People's Bank of China, Xuan Changneng, said that China will strengthen regulatory mechanisms that are compatible with the digital economy, because new technologies, especially new financial forms, should not be blindly accepted and recognized. Lack of regulation will exacerbate irrational market behavior.

In recent years, Chinese regulatory authorities have strengthened their scrutiny of the fintech industry to prevent the outbreak of financial risks. Since the end of 2020, the Chinese government has strengthened restrictions on the financial sector of online platform enterprises, seeking to balance Financial innovation and security.

Based on the surging news and Reuters reports, Xuan Changneng said at the round table of "financial infrastructure and financial services in the digital era" at the 2023 annual meeting of the Boao Forum for Asia on Friday (March 31) that from the current actual operation, the emphasis on decentralized Cryptocurrency has not solved the problems of credit currency.

He added that the exchange of Cryptocurrency with Fiat money and leveraged transactions involved in the transaction process are largely controlled by the trading platform, issuer or dealer, and Market maker, so this is a very centralized process in itself, with many risks hidden. The cyclical fluctuations, micro credit risk and Liquidity risk mismatch of Cryptocurrency still exist.

Xuan Changneng said that there is a lack of effective supervision in this field. Market manipulation, fraud, abuse of Related party transaction, misappropriation of customer assets or operation of mixing customer assets with own assets have occurred repeatedly. Recently, there have also been some lightning risks. FTX, security and other platforms have been investigated by regulators in the United States.

Vice President of the People's Bank of China, Xuan Changneng, said that China will strengthen regulatory mechanisms that are compatible with the digital economy, because new technologies, especially new financial forms, should not be blindly accepted and recognized. Lack of regulation will exacerbate irrational market behavior.

In recent years, Chinese regulatory authorities have strengthened their scrutiny of the fintech industry to prevent the outbreak of financial risks. Since the end of 2020, the Chinese government has strengthened restrictions on the financial sector of online platform enterprises, seeking to balance Financial innovation and security.

Based on the surging news and Reuters reports, Xuan Changneng said at the round table of "financial infrastructure and financial services in the digital era" at the 2023 annual meeting of the Boao Forum for Asia on Friday (March 31) that from the current actual operation, the emphasis on decentralized Cryptocurrency has not solved the problems of credit currency.

Later in 2021, Chinese regulators banned Cryptocurrency trading and mining because of concerns that Cryptocurrency speculation might disrupt the country's economic and financial order.