China’s central bank is not willing to change its long-standing hawkish stance on cryptocurrencies.
Yin Youping, deputy director of the Financial Consumer Rights Protection Bureau, recently said that digital assets of the likes of Bitcoin are not legal tender and have no “actual value,” according to Chinese government mouthpiece People's Daily.
He added that cryptocurrencies are “pure investment speculation,” urging people to steer clear of them.
Due to the rising popularity of cryptocurrencies, the PBOC moved to ramp up its crackdown on crypto trading.
The bank has also done a lot of work to “resolutely” clamp down on illegal cryptocurrency fundraising by cooperating with the China Banking and Insurance Regulatory Commission.
The PBOC plans to establish a working mechanism to deal with cryptocurrencies in a more severe way. At the same time, it encourages people to report crypto-related crimes.
Earlier this year, multiple Chinese provinces moved to shut down Bitcoin mining, effectively banning the entire industry and causing the “great migration” of miners.
Arman Shirinyan