The People’s Bank of China today gave out a statement outlining it had plans underway to intensify its crackdown on cryptocurrency-related products. The Central bank sometime back spoke in relation to financial stability and believes it is about time to take a drastic move.
Current state of affairs
Several trusted sources indicate that the new changes will swing into effect over the coming few weeks. PBoC has termed the various initial coin offerings a risky undertaking and unacceptable in the republic of China.
Experts have time and again insisted on the need to deal with the issues in question in a timely manner. According to them, such activities end up encouraging illegal activities such as tax evasion. The government wants this to grind to a halt and the financial institutions have a role to play.
The Central bank says it will commit itself to the reviewing of the various virtual coins. The bank outlines that major government officials and others take advantage of such coins to evade international sanctions.
A closer outlook
An official working with the bank says he hasn’t yet come across any regulation or law prohibiting these risky activities. This leader adds that Bitcoin private transactions have been going on for long.
However, he admits to have come across a series of warnings. Most of them show the general public the various risks associated with the investments and leave the matter in the hands of those investors.
The other reports have to do with the latest move by the Taiwanese government to revisit all the laws governing crypto transactions.
The financial regulator of the country will now move smoothly about most of its operations. Reports show that the amendment to the Money Laundering Control Act empowers it rather significantly.
The amendment in line with the Terrorism Financing Prevention Act also gives it a lot of power. At the moment, it seeks to limit the anonymous transactions .It also wants to push the various exchanges to ensure users undertake the registration exercise using their real names.
The banks will be reporting all those exchanges that fail to comply with the changes to the Financial Supervisory Commission. From there, the commission will decide on the next move.
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