Chinese Authorities Warn Businesses to Stay Away from Crypto 

Huawei

The Chinese government is continuing in its anti-crypto crusade. After making it abundantly clear that its pro-blockchain initiatives do not involve anything concerning cryptocurrencies, the government has been doing everything it can to get these digital assets out of its borders. 

The latest in those efforts are coming in a notice from several authorities in the capital city of Beijing. The notice, which was published in the early hours of Friday, was signed by the Beijing Local Financial Supervision and Administration Bureau, the Business Management Department of the People’s Bank of China, the Beijing Banking and Insurance Regulatory Bureau, and the Beijing Securities Regulatory Bureau. In it, the authorities deter firms from conducting any business with cryptocurrencies. 

Businesses Shouldn’t be Swayed by False Information

As the agencies explained, the recent pro-blockchain campaign implemented by the Chinese federal government has led many people and firms to increase cryptocurrency trading, as they believe that the government is supporting these activities as well. The authorities clarified that this isn’t the case, pointing to the fact that the ban on Initial Coin Offerings (ICOs) and crypto exchanges that was instituted back in 2017 is still very much in effect. 

Thus, they urged businesses in the region not to promote or affiliate themselves with any crypto platforms or projects. They should ensure not to engage in crypto trading, and no one should provide any professional or financial services to firms that dabble in cryptocurrencies as well.

The authorities also warned investors to keep their eye out for any crypto-related investment schemes and steer clear of them, as well as to report any additional violations of anti-crypto laws that they come across in the future.

Moving On with Its CBDC

The government’s treatment of cryptocurrencies over the past few months has been brutal. Several regions in the country, including Shenzhen and Shanghai, have conducted sweeping investigations into exchanges, causing several businesses to shut down or temporarily halt their operations. 

It’s worth noting that Beijing is still moving ahead with its plans to launch a Central Bank Digital Currency (CBDC). However, government officials are still doing their best to distance themselves- and their asset- from the mainstream cryptocurrency space. 

On December 22, the South China Morning Post reported that Mu Changchun, a deputy director at the People’s Bank of China and the head of the institution’s digital currency research institute, explained that the digital yuan would be nothing like Bitcoin or any other stablecoin on the market. As he explained, the new currency will be a completely digital version of the yuan, and there will be no speculation or backing from other currencies. 

The PBoC is currently working in earnest to launch the asset. Last month, the institution reportedly announced that it would be carrying out a pilot program with restrictions on large-scale cash transactions. The program is set to be implemented in phases across the Hebei Province, Zhejiang Province, and Shenzhen City.

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About Jimmy Aki

Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.