A committee organized by the People’s republic of China looks forward towards defining new standards of cryptocurrency trading. The Party Central Committee aims three core policies which will be the basis of digital currency regulation. The policies will address ICO regulations, global standards for online and blockchain trading and define the foundation of online insurance and nonbank payment services. China’s central bank held a panel discussion from which a meeting was proposed between the Financial Stability Development Committee, The People’s Bank of China and the Internet Financial Risk Special Restructuring Leading group. The panel also discussed the length of online financial safety and stressed the importance of revising the special rectification program.
Online Financial Safety
Head of the committee, Pan Gongsheng argued that there was no better time to pursue online financial safety than the current situation where the risk level for internet finance has dropped significantly. The primary goal is to improve the regulatory system and emphasize the strength of platforms set to curb online money laundering.
The Central Bank had banned all cryptocurrency trading and ICOs by the start of 2018. The local government used it’s ‘Great Firewall’ to prevent to block all Cryptocurrency related websites. Wechat accounts for cryptocurrency exchanges were also shut down while the government reaffirmed its ban on the use of Virtual Private Networks.
Resumption of Cryptocurrency Trading
The panel would also note that despite the January 2018 crackdown overseas transactions and regulatory evasion was still taking place. OKEX, one of the top performing cryptocurrency exchanges believed to process over $1.7 Billion realized a volume of over $1 Billion even after the ban. The firm which relocated to Hong Kong from mainland China is serving both Chinese and international investors. Although People’s Bank of China affirmed the close cooperation
Between various regions and departments after the launch of the unique restructuring program, there is an excellent need to note the arduous task of adapting an effective regulatory system.
The event of China’s ban was followed by a number of individual investors migrating from Mainland China to Hong Kong. The measures are a reflection of the Chinese government’s responsibility to protect its financial system. Some investors, however, see the regulations as a move to stamp out cryptocurrency due to the potential threat posed against the government’s financial infrastructure.