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The central bank released the "China Financial Stability Report (2023)": my country has effectively curbed risks in the field of crypto assets

The central bank released the "China Financial Stability Report (2023)": my country has effectively curbed risks in the field of crypto assets

CointimeCointime2023/12/25 07:16
By:Cointime

According to a report on financial stability in China released by the People's Bank of China, titled "China Financial Stability Report (2023)," the report points out in the chapter on cryptocurrency assets that cryptocurrency assets refer to privately-owned digital assets that primarily rely on cryptography, distributed ledgers, or similar technologies for development and operation. They have created new asset forms and business models, and pose dual risks to finance and digital technology. China has already taken measures to address the risks associated with cryptocurrency assets, and various departments have worked together to prevent, resolve, and dispose of risks in this field, effectively curbing related risks. Currently, the scale of cryptocurrency assets accounts for a small proportion of global financial assets, and their association with traditional financial systems is limited. However, their development is fast, their business models are complex, their governance structure is opaque, and their cross-border business is active, which may threaten the stability of the global financial system.

The report also mentions that since 2022, there have been frequent incidents of risks associated with cryptocurrency assets, and regulatory policies and measures have been introduced by multiple national regulatory departments and international organizations to assess the risks associated with cryptocurrency assets and to develop regulatory policies and measures. Overall, they follow the principle of "same business, same risk, same regulation" to regulate cryptocurrency asset businesses in accordance with their risk levels, and to minimize regulatory data gaps, reduce regulatory fragmentation, and eliminate regulatory arbitrage.

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