China's Central Bank Releases Report on Cryptocurrency Regulation
Date: 2023-12-23 Author: Dima Zakharov Categories: CRYPTO PAYMENTS, IN WORLD
China's Central Bank Takes a New Approach
In a groundbreaking move, the People's Bank of China (PBOC) has released a comprehensive report emphasizing the need for global collaboration in regulating blockchain technology and the digital asset sector. Experts within the regulatory body have highlighted that the cryptocurrency industry currently represents only about 1% of the global financial landscape, with limited direct impact.
Recognition of Digital Assets
Colin Wu, a prominent industry journalist, noted that the PBOC's report notably addresses digital assets as a distinct category. Regulatory authorities worldwide, according to the PBOC, should strive for consensus in developing unified legal norms to effectively supervise this burgeoning field.
Acknowledging Risks
Chinese economists underscored the high-risk nature of cryptocurrencies, particularly with regard to the activities of hackers. The collapse of FTX and Terra last year had a significantly adverse impact on industry sentiments, and industry experts believe that the PBOC's new report holds significant global importance.
China's Unique Approach
Despite its call for international cooperation, China has historically maintained a stringent stance on digital assets. In 2021, Chinese authorities introduced measures to curb the widespread use of these instruments within mainland China. Nevertheless, the region remains a major hub for cryptocurrency mining activities.
Stablecoin Market at a Turning Point
Experts at CoinDesk previously indicated that the stablecoin market is at a pivotal juncture in its development. In the upcoming year, the actions of major jurisdictions in shaping a unified regulatory framework will exert significant influence on this industry. Notably, many countries have yet to reach a consensus on this matter.
