The cryptocurrency market has been disrupted by interventions by China’s governments, but it certainly does not mean a full-blown ban on digital currencies, says financial analyst Winston Wenyan Ma, former managing director at China Investment Corporation (CIC), adjunct professor at NYU, and investor. The government is still defining the scope of digital currencies, and focuses on minging and trading, and is certainly no banning ownership, he says at Verify.
China is testing its own form of digital currency, the Digital RMB. On June 1, the Beijing Regional Financial Supervisory Commission announced that it would provide 40 million digital yuan in the latest currency test. China is reportedly hoping to launch a currency form prior to the 2022 Beijing Winter Olympics.
Winston Ma said VERIFY cryptocurrencies have not yet been clearly defined in China’s legal system. China has banned crypto exchanges and initial coin offerings, but has not banned individuals from owning cryptocurrencies, Ma said. In the May announcement, in addition to reiterating the ban on cryptocurrencies as a whole, a new crackdown on mining operations has begun.
“The latest crackdown is by the State Council’s Financial Stability Commission, led by Deputy Prime Minister Liu He. It is China’s top-level financial regulator and has vowed to crack down on cryptocurrency mining and trading activities. It is expected that new regulations will be issued by each ministry to better define and regulate the mining, holding and trading of citizens’ cryptocurrencies. ”…
Mr. Ma told VERIFY: “In addition to the issue of market volatility, carbon neutrality is also an important consideration. According to a recent survey by Chinese scientists, this Chinese emission is [equal to that in] Czech. It points out that it will exceed the total annual greenhouse gas emissions of some smaller countries such as the Republic and Qatar.”
More at Verify.
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