Coin World reports:
The Chinese government has recently taken further measures to crackdown on cryptocurrency mining and trading activities in the country. On May 21, 2021, the State Council’s Financial Stability and Development Committee held a meeting to discuss the risks associated with cryptocurrencies and the need for stricter regulation.
During the meeting, the committee expressed concerns about the excessive speculation, illegal activities, and financial risks that cryptocurrencies pose. It emphasized the importance of maintaining financial stability and protecting the interests of investors.
To address these concerns, the committee proposed several measures. Firstly, it called for a comprehensive ban on cryptocurrency mining and trading activities. This ban would apply to both individuals and businesses involved in these activities. It is worth noting that this is not the first time the Chinese government has taken action against cryptocurrency mining. In 2017, it banned Initial Coin Offerings (ICOs), which are a popular fundraising method in the cryptocurrency industry.
Secondly, the committee emphasized the need for local governments to take responsibility for enforcing the ban. It urged them to conduct thorough investigations and crack down on any illegal activities related to cryptocurrencies. Additionally, it called for strengthened supervision and regulation of financial institutions to prevent them from providing services to cryptocurrency-related businesses.
Furthermore, the committee highlighted the importance of educating the public about the risks associated with cryptocurrencies. It called for increased efforts to raise public awareness and enhance financial literacy regarding cryptocurrencies.
The committee’s proposed measures reflect the Chinese government’s determination to tighten its control over the cryptocurrency industry. This move comes as part of a broader effort to maintain financial stability, combat illegal activities, and protect investors’ interests. It remains to be seen how these measures will impact the cryptocurrency market in China and the global cryptocurrency industry as a whole.