People’s Bank of China Signs Declaration for Safe Cryptocurrency Trade, Warns Illegal Platforms

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Following last month’s tumultuous joint declaration cryptoasset-related activities, the real crackdown in China is about to begin – with administrations, legal agencies, and courts working on how to implement the details.The watershed affirmation was authored by the focal People’s Bank of China (PBoC) and approached organizations in the nation to take punitive measures against crypto-trading clients. It likewise cautioned overseas platforms focusing on Chinese clients that they could confront penalties.

However, the firms appear to have made their decisions due to the fact that the PBoC’s co-signatories were heavy-hitting enforcers with real power to dish out punishment: namely, the likes of the Supreme People’s Court, the Supreme People’s Procuratorate, and the Ministry of Public Security.

A number of prominent crypto players immediately closed down their businesses after the joint declaration, despite previous similar statements. Reports claimed that Huobi, the exchange giant, evacuated its staff overseas a week before the PBoC statement was issued, apparently aware of something big waiting for them.

Per the media outlet Jiwei, these authorities and others are now reviewing the punishment system for illegal crypto mining and undeclared crypto activity.

The procuratorate and legal agencies are, the media outlet noted, “conducting research on crypto exchanges and mining and other related activities,” and “exploring” their options for “conviction and sentencing.”

The declaration’s Chinese title can be roughly translated as “Further Preventing and Doing Away with of Risks Associated with Cryptocurrency Trading Hype.” And “doing away” with crypto activity could well become a major priority for the bodies, which have begun to “deliberate” on “how to implement the regulatory requirements.”

“Judicial interpretations” of the statement are set to be unveiled “in due course,” the outlet added.

”A PBoC spokesperson briefed the media on October 11 with similar sentiments to those expressed in the joint statement, adding that the government will “maintain a high-pressure crackdown on crypto trading activities.”

As stated by the spokesperson, three cryptocurrency tokens are listed by name: bitcoin (BTC), ethereum (ETH), and tether (USDT). The latter is a major gateway for bitcoin traders in China, and has previously allowed many Mainland Chinese access to BTC on overseas-based platforms. The spokesperson added that Beijing’s policy “on cryptocurrencies are clear and consistent,” adding that enforcement agencies would “coordinate” their efforts and that further crackdown measures would marry central and provincial efforts.

The PBoC concluded by stating that the crackdown would “maintain” China’s “economic and financial order,” as well as its “social stability.”  

News Summary:

  • China is ready to go rigid with the enforcement of cryptocurrency crackdown
  • Check all news and articles from the latest Security news updates.
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Chris Munch

Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.