China Wants to Close Foreign Exchange Access Again

Chinese authorities continue their cryptocurrency trading regulation actions
28 February 2018   618

The Chinese authorities continue to struggle with crypto-currencies. They turn their views to the platforms, that allow to trade on the foreign exchanges. This is reported by Bloomberg referring to the source familiar with the situation.

Regulators intend to carry out verification of accounts in Chinese banks and payment systems belonging to individuals and legal entities suspected of organizing trades on foreign crypto exchanges  The assets of the owners of these accounts can be blocked, and they themselves can be denied service.

These measures are aimed at further reducing the number of possible options, which may be used by Chinese citizens who want to buy a crypto currency. To circumvent the ban imposed last year, some companies have opened offshore platforms that allow residents of the country to buy crypto-currencies with the help of bank accounts and payment applications. The source does not give specific figures and names of the platforms, but we can assume that we are talking about such exchanges as Huobi and OKEx, which continue to bind sellers and buyers of crypto-currencies

Experts Ask China Don't be in Rush For Own Crypto

Ex deputy chairman of the Bank of China said the CB should take part in the development of international regulation of crypto assets firstly
27 January 2020   124

China should strengthen cooperation with other countries to regulate the cryptocurrency industry, and not accelerate the development of its own digital currency, experts say. It is reported by the South China Morning Post.

So, the former deputy chairman of the People’s Bank of China, Zhu Min, noted that the central bank, which is developing a digital yuan in many ways as Facebook’s Libra response, should first of all take part in the development of international regulation of such assets.

Ba Shusong, chief China economist for the Hong Kong stock exchange, also believes that monitoring digital currencies requires a system that is controlled from different angles, as they have the potential to change the global financial system.

You would need to first improve the regulatory framework for [financial] technology. There is a need for global cooperation for an alternative regulatory framework.

 

Ba Shusong

Chief China economist for the Hong Kong stock exchange

 

Many fear that the popularity of Libra could strengthen the dominant role of the US dollar. At the same time, Deutsche Bank analysts believe that the digital yuan will undermine the primacy of the dollar in the global financial market.

Hiromi Yamaoka, the ex-head of the Bank of Japan supervisor of payment and settlement systems, also emphasized that the upcoming launch of Libra has caused competition among central banks seeking to make their currencies and services more attractive.

Something like Libra would make transactions costs much cheaper. Major central banks need to appeal that they, too, are making efforts to make settlement more efficient with better use of digital technology.

 

Hiromi Yamaoka

Former head of the Bank of Japan’s (BOJ) division overseeing payment and settlement systems