China’s Central Bank Governor Speaks About Cryptocurrencies

China will resolutely stop speculation about cryptocurrency transactions and seriously crack down on illegal fund raising and money laundering, Governor Pan Gongsheng said on Friday.

Pan presented the document titled “Report on the Financial Work of the State Council” at the sixth meeting of the Standing Committee of the 14th National People’s Congress, China’s top legislative body.

Pan said the central bank will implement a prudent monetary policy, maintain a reasonable and sufficient liquidity, and guide the growth of money and credit and social financing to be basically in line with nominal economic growth.

Gongsheng emphasized that all financial activities should be carried out under an appropriate license. He also stated that there would be a serious crackdown on illegal fundraising and money laundering activities.

The president outlined a five-point plan to reduce financial risks. This plan includes further remediation of risks associated with “fake gold exchanges” and third-party asset management companies. The plan also includes a crackdown on illegal fundraising activities and an intensive effort to crack down on local virtual currency transactions.

Pan’s statements come as China intensifies its crackdown on cryptocurrency trading and mining activities, which are considered illegal by authorities. Although China has banned domestic cryptocurrency exchanges since 2017, some investors have continued to trade via overseas platforms or peer-to-peer transactions.

*This is not investment advice.