The China Securities Journal is alarmed about financial risks associated with Bitcoin and crypto

A broader consensus on strengthening surveillance of bitcoin and crypto transactions is reached, according to a Opinion piece in the China Securities Journal (CS) on Sunday.

The CS has been assigned by the China Securities Regulatory Commission, China Insurance Regulatory Commission, and China Banking Regulatory Commission as the exclusive channel for information disclosure, policy interpretation, and market analysis of publicly available financial instruments.

Observations made

The public is actively warned of the high financial risks and illegal effects of entering the crypto market and of the high risks of cryptocurrency speculation.

China has been issuing advice and developing guidelines on a regular basis for years to prevent the use of crypto. As the country prepares to launch its own Central bank-controlled digital currency and Chinese public media are tightening the rope of crypto.

“Bitcoin-related transactions are increasingly scrutinized and monitored around the world. Currently, regulators in many countries have either expressly banned transactions or issued guidelines to restrict them, ”the report said.

It added, “In recent years, national competent authorities have always been putting a lot of pressure on virtual currency transactions and there has been a sustained upward trend.”

However, China’s largest banks are already there By providing blockchain-based financial applications, the country is preparing for the introduction of its own digital currency, digital currency (Electronic Payment, Electronic Payment, DCEP). Without anonymity for the user, it will Provide new means to monitor the Chinese government’s economy and population.

Prohibit Bitcoin

In a recent statement on Bitcoin, the People’s Bank of China said the move was to “protect the property rights of the public, maintain the renminbi’s legal tender status and prevent money laundering risks.”

Therefore, since 2013 there has been a ban on trading with banks and payment institutions in Bitcoin The Chinese central bank together with four ministries published a public statement “Notice to prevent Bitcoin Risks ”.

In doing so, the Chinese financial authorities claimed to protect the public’s property rights, protect the yuan, prevent money laundering, and ensure the country’s financial stability.

Meanwhile, the need for closer scrutiny and limitation is justified by the emphasis on Bitcoin’s high price volatility, with the CSJ in its report highlighting the nearly 30% fall in the market price in April and its use by criminal parties for illegal transactions in its report highlighted.

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