China Will Restrict the Regulation of the Cryptocurrency Market

According to a statement published on the 29th of March, the People’s Bank of China (PBoC) intends to continue to apply stringent measures against virtual currencies as part of its RMB protection and strengthening strategy.

The deputy head of PBoC Fan Yifei outlined the government’s further steps towards protecting the RMB at the 2018 national video conference dedicated to the achievements and problems faced by China’s monetary system.

Fan supported the development of the state-regulated digital currency, noting that one of the goals is further strengthening of reforms and innovations, promoting research and developing a digital currency issued by the central bank, he also confirmed the importance of protecting the RMB from unofficial virtual currencies.

“[One objective] is to strictly strengthen internal management and external supervision, attach great importance to and effectively strengthen the quality control of RMB… and carry out rectification of various types of virtual currencies”.

Although the statement itself did not contain information on any specific measures regarding crypto or virtual currencies, Fan’s and PBoC’s position demonstrates further application of the strict policy of the Chinese government towards decentralized forms of payment.

A number of steps against the trade in digital currencies have already been taken by China, so ICO and the operation of websites related to cryptocurrencies were banned, and numerous cryptocurrency exchange accounts were frozen. As a result of these tough measures, traders went to other markets with softer rules regarding cryptocurrency, like Hong Kong and Japan.

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