Li Bin, Deputy Director of Foreign Exchange State (SAFE), said the institution is closely monitoring the impact of cryptocurrency on capital flows and is monitoring plans to enhance its identification and monitoring capabilities.
In a subforum of the Asian Boer Forum entitled “Finding Financial and Financial Stability in a Unstable World,” Li said it is important to understand how digital assets affect cross-border transactions. “This is a very important issue and we will conduct detailed research to continuously improve our monitoring capabilities,” he said.
China imposes strict regulations on crypto trading and mining, but authorities continue to assess the sector’s impact on financial stability.
China claims it is concerned about capital flight, financial stability and environmental issues, allowing it to relocate most of its major mining work to other regions, including the US, Kazakhstan and Canada.
However, retail investors were able to continue using offshore services and the use of decentralized finance (DEFI) protocols. Both were able to continue trading as the regulatory environment continued to take over.
*This is not investment advice.
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