Chinese officials have emphasized the need for international regulators to tighten oversight of the cryptocurrency industry to protect users from fraud and financial loss.
Xuan Changneng, the deputy governor of the People’s Bank of China (PBOC), acknowledged the importance of not “blocking the road” to innovation, but insisted that testing and implementation of new technologies must adhere to existing rules.
He highlighted the risks associated with digital assets, including cryptocurrency scams and the bankruptcy of American banks that provided services to cryptocurrency companies.
The deputy governor called for improved regulations to ensure that financial innovations do not threaten financial stability.
Meanwhile, China’s Deputy Finance Minister, Liao Min, has expressed readiness to help create international standards for the cryptocurrency industry.
He noted that the sector is already facing challenges from hackers, intruders, and bankruptcies, making the future of digital assets uncertain.
It is worth noting that China is more favorable towards blockchain technology than cryptocurrencies, with the government approving the establishment of a blockchain research and development center in February.
The Shanghai Chemical Industry Testing Research Institute (SICIT) also announced plans in March to use blockchain to track dangerous chemical cargoes.