[2018-04-09] China will continue to "adjust" the work of the crypto industry

[Diabolov]

Last autumn, the Chinese government first banned the ICO, and then ordered all cryptocurrency exchanges to stop their work. According to local media reports and plans of the People's Bank of China (PBOC) for 2018, the authorities are going to finish what they started in 2017 by "adjusting" all operations with virtual currencies and implementing new "reforms and monitoring".

Despite the fact that the Chinese government took the last serious actions against the cryptocurrency industry more than six months ago, the community continues to monitor the actions of the NBK in the hope that the financial regulator will allow the exchanges to resume their work. However, while nothing indicates that this may happen, on the contrary – last month, one Chinese politician proposed to create a state cryptocurrency exchange, which indicates the planned monopolization of the industry, rather than the return of free trade. In addition, according to numerous reports, the Central Bank is preparing to issue its own digital token.

At the end of last month, the NBK announced that it plans to continue fighting cryptocurrency operations, including multilevel marketing schemes. According to the Vice-President of the Central Bank, Fan Yifei, the NBK is investigating the issue of issuing its own token – the digital yuan.

"An adjustment will be made for all types of virtual currencies," he said. he. "First of all, we will launch reforms and innovations to promote research and development in the field of production of the Central Bank's own digital currency. Secondly, the Bank should strengthen control and adjust the operation of all types of virtual currencies."

In addition, on 3 April, sun Guofeng, the head of the NBK's financial research, explained that traditional Fiat money had an adverse impact on interest rates in the economy, and the cryptocurrency issued by the NBK would contribute to raising interest rates. Hofen believes that the NBK's digital currency can help to resolve the issue of negative interest rates, and therefore the development and research of the Central Bank should be accelerated.

"In the long run, because of the lower natural interest rate, monetary authorities may incorporate negative interest rate policies into their natural set of measures," sun Guofeng explains. "Due to the fact that the digital currency can solve this problem, the Central Bank should speed up its development."

Despite the fact that in recent months everything showed that China continues to fight the cryptocurrency industry, the authorities understand the potential of blockchain technology. In mid-March, it was reported that the Chinese government was considering the creation of national standards to promote the development of blockchain and distributed Ledger technology (DLT) in the country. In addition, recently it became known that the Chinese petrochemical giant Sinochem Group used blockchain to export goods.



https://news.bitcoin.com/pboc-plans-to-continue-rectifying-cryptocurrency-activity-in-china/

[Qartersa]

Nothing new. As we all should know, the government of the Republic of China will always find ways for things to work out should they see the same lucrative for all Chinese merchants. As greedy as it sounds, they have a really solid aim which is not bendable at all cost, that is, to ensure they profit. Chinese people are known to always be good in business, as stereotypical as it may seem. In line with this, I guess that is why they try to pattern their course of action to the movement of cryptocurrencies' market: It is because they see growth in cryptocurrencies' market in the long run. Hence, they want to get all plausible benefits they can derive from it.

[Argoo]

We continue to see that the Chinese government continues to seek its own way of using the crypto currency, and they are still far from applying a single plan on this issue. The idea of a national centralized crypto currency in China is not new, and they have recently stated that its creation is not a top-priority task. Now they have changed their mind about this. The idea of creating a state crypto exchange is generally new. It is unlikely that such an exchange will be popular.

[Goozzi]

But some time, good news comes from China. For example a new Chinese blockchain fund has $1.6 billion available to invest in innovative startups - 30 percent of which is backed by a city government.

Dubbed Xiong'An Global Blockchain Innovation Fund, the new initiative was announced Monday at the opening ceremony of a new Blockchain Industrial Park in Hangzhou - a Chinese city noted for its support for innovation and which plays host to major companies such as Alibaba.

Source: https://www.coindesk.com/1-billion-blockchain-fund-launches-with-chinese-government-backing/

[Ruby Anderson]

I would like to see China implement all these changes and innovations. For me this is definitely not a news, I hear these kind of info about China everyday but still waiting... interesting tho

[Diabolov]

This is crazy "it will see over $400 million coming from the Hangzhou city government as a guided fund that will be used to invest in promising blockchain projects."

[MoonJeina]

This was meant to happen . Its almost over a year since Republic of China has banned crypto currencies and ICOs in their country . But we still hear about some movements of activities of crypto currencies being done in China every other  day . China being such a technically advanced country was a major place for the growth of crypto currencies and that is tha main reason why people are still doing the practice of trading and all other sorts of things in China inspite of it being banned and not legal . That is why government had to "adjust" with it some how.