The Chinese central bank has established a “coordination mechanism” with state agencies in order to continue the fight against cryptocurrencies.
According to state officials, the Chinese government is becoming more serious about cracking down on the cryptocurrency business, as they deploy more resources to battle cryptocurrency operations in the country.
China’s People’s Bank of China (PBoC) formally stated on September 24 a package of new steps to combat cryptocurrency adoption in the country, including the promotion of tighter inter-departmental collaboration in the fight against cryptocurrency activity.
A “coordination mechanism” has been formed by ten Chinese state authorities, including the People’s Bank of China, the Cyberspace Administration of China, and the Ministry of Public Security, to prevent financial players from participating in any cryptocurrency transactions.
Following the announcement, it was revealed that the authorities and organizations involved had completed significant changes to crypto surveillance technologies in order to more efficiently identify unlawful cryptocurrency transactions.
The People’s Bank of China (PBoC) highlighted that a large number of government entities will now be attentively cracking down on cryptocurrency in compliance with 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.”
Wen Xinxiang, director of the payment and settlement department of the People’s Bank of China, voiced concern about the growing popularity of cryptocurrencies and stablecoins, and called for further measures to ensure that the traditional financial system can compete with the industry’s offerings.
Because local authorities have already shut down many mining farms and suspended cryptocurrency trade this year, these additional steps by the Chinese government serve to reaffirm the Chinese government’s anti-crypto attitude.
Previous local crypto limitations have been implemented, with Chinese officials prohibiting cryptocurrency exchanges from providing services to residents of the country back in 2017. BTC topped $20,000 for the first time in December 2017, just a few months after China banned cryptocurrency exchanges.