Member of a key political Advisory councils of China proposed the establishment of a national cryptocurrency exchanges and other regulatory systems at the annual session of the legislative and consultative bodies of China. On 3 March, local media reported Lie Yun Wang.
Van Penzes (Wang Pengjie), member of the people’s political consultative conference of China (CPPCC) have suggested that the people’s Bank of China (PBOC) and the securities Commission of China (CSRC) is to create a «approval system» to the blockchain and digital asset management, and to consider the possibility of developing a public trading platform for digital assets.
Bencze raised the issue of growing the market capitalization of digital assets, such as ether (ETH), bitcoin (BTC) and litecoin (LTC), noting the fact that their volume exceeded the capitalization of China’s largest Internet service provider Tencent in January 2018. He noted this growth as the main reason why China must pay attention to the technology of the blockchain. He also referred to the new regulation, adopted in South Korea and the fact that the us Nasdaq is considering
the possibility of launching futures on bitcoin.
Pantse mentioned problems facing China, working with bloccano. He noted that «the lack of rules governing intellectual property […] in the long term could backfire to the financial security of China.» He also referred to the lack of clarity related to the legal status of cryptocurrencies and low awareness of end users who can «easily» become victims of fraud by «unscrupulous companies to cover bloccano that will lead to serious economic losses».
A possible solution to these problems, according to Penzes, could be the creation of the aforementioned «approval system» and introduction of system of identification of users in conjunction with thorough education of investors of the technology of blockchain and digital currency. Pantse also proposed to create a state platform for trading digital assets on the basis of the blockchain, jointly controlled NBK and securities Commission:
«Thus, we are able to provide an official channel for companies that want to raise funds, as well as the opportunity for individual investors to increase their capital.»
Statement Pantse signals that the Chinese government may soon begin to take real action to regulate the blockchain and cryptocurrency and not only to forbid any manifestations of these new technologies. Although it is likely that the authorities will take a course to monopolize the industry, as evidenced by the proposal to create a national cryptocurrency exchanges.
Last year, Chinese authorities initially banned
the holding of ICO in the country, and then ordered
all cryptocurrency exchanges to stop working. A mining company fearing imminent ban and its activities, began to move
abroad, and the Chinese cryptocurrency investors moved operations to foreign exchange, which also caused
the increased interest of regulators.