China stresses digital asset regulation in financial stability report
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Homepage > News > Finance > China stresses digital asset regulation in financial stability report The People’s Bank of China (PBOC), the country’s central bank, has highlighted global efforts to regulate digital assets in its annual financial stability report for 2024 whilst also noting that Hong Kong is “actively exploring” a digital asset licensing regime. The China Financial Stability Report, released on December 27, included a section dedicated to digital assets, in which the PBOC pointed out that 51 jurisdictions globally have issued bans or restrictions on digital assets. Specifically, it mentioned how some economies adjusted existing laws, such as Switzerland and the United Kingdom, while others enacted new legislation, the most notable being the European Union’s Markets in Crypto Assets regulation (MiCAR). In September 2021, the PBOC, along with nine other Chinese regulators, issued the “Notice on Further Preventing and Managing the Risks of Crypto Trading No. 237,” which effectively banned digital assets in the country. The notice stated that digital assets are not legal tender in China, that digital asset transactions are illegal, and that any entities and individuals involved in the trading of digital assets may face administrative and criminal penalties. The notice amounted to the most comprehensive digital asset regulation in China to date, and the ban even went so far as to state that providing online services to Chinese residents via overseas digital asset trading platforms is considered illegal and subject to criminal liability. However, in stark contrast to the mainland prohibition, the trading of digital assets is legal in the Hong Kong Special Administrative Region. In June 2023, Hong Kong launched a digital asset licensing regime for trading platforms, allowing licensed exchanges to offer retail trading services. More recently, in August 2024, the Hong Kong Legislative Council appeared to double down on their intent to make the region…
Filed under: News - @ January 6, 2025 4:01 am