The People’s Bank of China said that it would investigate those who do business with cryptocurrencies. That monetary authority has banned cryptocurrency exchanges from operating in the country since 2017.
The People’s Bank of China (PBOC) recently stated that cryptocurrency-related businesses are illegal financial activities. In this way, the highest monetary authority of the country reiterated the national policy against cryptocurrencies.
In that sense, they said they would investigate all those who do illegal financial activities as they are committing crimes.
The renminbi issuing institution explained that the goal is to prevent and stop the uproar regarding cryptocurrency trading in China. The PBOC has expelled exchanges from the country and banned local operations of cryptocurrency services abroad since 2017.
However, that activity has continued to grow even after the Chinese government ended cryptocurrency mining in the country. The Asian giant considers that those assets have disturbed the economic and financial order, leading to criminal and illegal activities.
The PBOC Monitors Suspicious Transactions
Although the People’s Bank of China has banned cryptocurrency activities, it has tightened its supervisory measures to ensure censorship on them.
They mentioned that they would work alongside almost ten national organizations that include the Central Administration of Cyberspace. Among those participating would be the Ministry of Industry and Information Technology, the Ministry of Public Security, and the Banking and Insurance Regulatory Commission.
Those organizations will develop guidelines that they will deploy in all regions of the country, which have fought the supposed risks of cryptocurrencies. In that regard, they will deepen the monitoring and early warnings of suspicious trading activities, basing on online and offline investigations.
China to Deepen Internet Censorship and Banking Restrictions
Of course, the PBOC has prohibited the country’s banks and other payment institutions from offering financial services related to cryptocurrencies. Account openings, fund transfers, clearance, and settlement procedures are out of the cryptocurrency services that they can offer.
Internet companies cannot provide services like trade shows, marketing promotions, and payments for commercial activities related to cryptocurrencies. In case of legal and regulatory violations, the competent authorities will immediately close the Internet applications that do those activities.
In general, no one may disclose, either commercially or promotionally, any information related to cryptocurrencies. In addition, the State will launch a propaganda campaign to tell everyone that using cryptocurrencies in the country is a crime. They seek to educate people and spread public knowledge about the alleged risks of these transparent and open-source protocols.
Censorship against Bitcoin primarily focused on exchanges and brokers, as well as on token issuance schemes. However, the Chinese have been able to continue operating, even by using keywords to avoid identification.
Since the trading by natural persons is not legal, the PBOC investigates them. That institution believes that the activities with cryptocurrencies put the financial stability of the country at risk. The same happens in other countries, whose authorities tighten their regulations on using those assets and even prohibit them.
By Alexander Salazar
