The Chinese government is now getting more serious about cracking down on the crypto sector as state authorities are bringing forces together to combat crypto operations in the nation. The Chinese central bank sets up a “coordination mechanism” with the state agencies to continue battling cryptocurrency.
On September 24, 2021, the People’s Bank of China (PBoC) announced several new measures to fight against crypto adoption in China, including promoting stronger inter-departmental coordination in cracking down cryptocurrency activities.
10 Chinese state authorities, including the Ministry of Public Security, the Cyberspace Administration of China, and the PBoC, have established a “coordination mechanism” to prevent the financial players from participating in any crypto transactions.
Based on the announcement, the institutions and authorities involved in the campaign have completed considerable improvements to crypto monitoring platforms to identify any illegal crypto transactions effectively.
The People’s Bank of China stressed that many government agencies will now be cracking down on crypto closely in compliance with the Chinese laws:
“Financial management departments, cybersecurity and information departments, telecommunications departments, public security departments, and market supervision departments work closely together to cut off payment channels, dispose of relevant websites and mobile applications in accordance with the law.”
The director of the payment and settlement department at the People’s Bank of China (PBoC), Wen Xinxiang, insisted on concerns over the increasing popularity of cryptos and stablecoins, calling in for more measures for the traditional financial system to complete with the sector.
Notably, the latest moves by the Chinese government also reaffirms China’s anti-crypto stand as local authorities have already been shutting down many mining farms and suspending all crypto trading activities in 2021.
The Chinese regulators had imposed similar crypto restrictions before, banning cryptocurrency exchanges from offering services in China since 2017. Shortly after China imposed the crypto exchange ban, Bitcoin surged towards $20,000 for the first time in December 2017.