The Institute of Finance in the People’s Bank Of China has released a report that places cryptocurrency regulations in the 2018 priority list.
A report from the PBOC’s Institute of Finance states that virtual currencies pose risks to people of China. The main concern of the Chinese government is the volatility of cryptocurrencies that can put the Yuan at systematic risk in a situation where there is a widespread retail investment.
The report also pointed out the high possibility of criminal misuse of cryptocurrencies and the negative effect of a lack of a rigid regulatory framework.
According to the document, a good way to protect investors is to strengthen the regulatory framework of the nation on cryptocurrency. It calls for the development of a strong procedure for adequate monitoring of the circulation of virtual currencies.
The report suggests that the G20 should take the lead in establishing a global framework for regulating digital currencies including being advocates of info sharing and building cooperation among international regulatory bodies regarding digital currencies.
A Dramatic Rise In Popularity
According to the report, cryptocurrencies have grown in popularity a great deal over the past year. This is partly due to the significant rise in the global demand for Bitcoin.
The report emphasizes targeting pyramid schemes and multi-level marketing but refers to cryptocurrency as the main priority for regulators.
Recently, the PBOC published a document that offered the public synopsis of all the topics that were discussed during the most recent telephone conference with the central bank regarding gold, silver, monetary policy, and national currency.
The document also emphasizes that the People’s Bank Of China desires to expand its efforts in promoting the R&D of the digital currency by China’s central bank as the main policy for 2018. This indicates that there is still an ongoing plan to develop a national cryptocurrency for the central bank.