- The annual report of the People’s Bank of China includes a section on the regulation of cryptocurrencies, emphasizing the risks and mentioning specific cases like the collapse of Terraform Labs and the bankruptcy of the FTX crypto exchange.
- The Central Bank of China is calling on other countries to collaborate on regulating digital assets, highlighting the need for a unified approach.
- The report acknowledges the limited connection between the cryptocurrency market and traditional finance, stating that it accounts for about 1% of the global financial system.
- In addressing concerns about the crypto industry, the regulator mentions vulnerabilities to hacking, market manipulation, and governance mechanisms in the decentralized finance sector.
- This is the first time that a separate section on cryptocurrencies has been included in a report by the Chinese Central Bank.
- China’s call for global regulation comes after its ban on cryptocurrencies and increased oversight of non-fungible tokens.
- The country introduced a national blockchain standard in June 2023 and actively supports the development of metaverses.
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The Central Bank of China called on other countries to jointly regulate cryptocurrencies
