Bitcoin (CRYPTO: BTC) and other cryptocurrencies “are not legal tender and have no real value support,” said deputy director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China (PBoC) Yin Youping.
What happened: According to a report by local news channel People’s Daily Online, Youping said that cryptocurrencies are purely speculative assets. He also advised the public to increase risk awareness and stay away from the crypto market to “protect their wallets”.
The PBoC official also said that pending the possible recovery of the crypto market and associated activities in China, the central bank will monitor foreign cryptocurrency exchanges and domestic traders in coordination with the relevant authorities.
What else: The institution also plans to tackle the space by blocking crypto trading websites, applications and corporate channels.
According to the report, PBoC – as a member of the Joint Conference to Deal with Illegal Fund Raising – is actively working with the lead branch of the China Banking and Insurance Regulatory Commission.
As a result of this partnership, the regulator has created systems focused on monitoring, early warning, publicity, education, and overall combating of illegal fundraising powered by cryptocurrencies and blockchains.
Youping explained that PBoC’s next step will be to establish a normalized operating mechanism, continue to exert high pressure on illegal cryptocurrency-related operations and continue to crack down on crypto-related transactions.
Finally, the report states that “if the general public finds evidence of illegal fundraising crimes, they should immediately report it to the relevant departments.”
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