The People's Bank of China pledged to maintain intense regulatory pressure on cryptocurrency trading and speculation following a crackdown on the sector earlier in 2021. In a statement on Saturday, the bank noted that it will also supervise financial platform companies to rectify their practices in accordance with regulations.
Policy makers at the Chinese central bank met on Friday to discuss work priorities for the second half of this year, as China has launched its most extensive crackdown on cryptocurrency trading and mining since 2017 in recent months, following a rise in Bitcoin and other cryptocurrencies, heightening authorities' concerns about the risks of fraud, money laundering, and excessive energy consumption.
Targeting Payment Platforms
China has imposed a series of regulatory measures targeting monopolistic behavior in online payment platforms such as Ant Group over the past year. According to the statement, the central bank will work to prevent major financial risks and push to reduce the number of high-risk financial institutions in key provinces. The Chinese central bank will also accelerate efforts to establish the financial stability law proposed by Deputy Governor Liu Guiping in March.
The People's Bank of China reaffirmed that its prudent monetary policy will be flexible, targeted, reasonable, and appropriate. The bank committed to implementing a well-designed policy "across cycles," a term widely interpreted to mean that authorities will use a longer time frame when considering policy support, avoiding excessive economic stimulus.
