The Chinese government is becoming tougher against the cryptocurrency industry as state authorities bring in forces to deal with crypto operations in the country.
The People’s Bank of China (PBoC) on Friday officially announced a set of new measures to combat crypto adoption in China, including promoting strong inter-departmental coordination to stop crypto activity.
Ten Chinese state authorities, including the PBOC, China’s Cyberspace Administration and the Ministry of Public Security, have set up a “coordination system” to prevent financial players from participating in any cryptocurrency transactions. According to the announcement, the concerned authorities and institutions have made significant improvements in the crypto monitoring platform to efficiently identify illegal cryptocurrency transactions.
The PBOC stressed that a number of government agencies are now going to focus on crypto in line with Chinese law:
“The Financial Management Department, the Cyber Security and Information Department, the Telecommunications Department, the Public Security Department and the Market Supervision Department work together to close payment channels, dispose of relevant websites and mobile applications in accordance with the law.”
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Wen Xinjiang, director of the Payment and Settlement Division of the People’s Bank of China, expressed concern over the growing popularity of cryptocurrencies and stablecoins, calling for more measures to be taken for traditional traditional financial systems to compete with the industry.
Recent moves by the Chinese government further confirm China’s anti-crypto stance as local authorities have already shut down multiple mining farms and suspended crypto trading this year. Chinese regulators have previously imposed similar crypto restrictions, including a 2017 ban on providing services to crypto exchanges in China.