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“…But it could also bring a lot of illegal cross-border financial activities. This should be a matter of great concern to all countries, especially emerging markets.” Sun Tianqi
Speaking on the Bund Summit in China’s commercial hub, the chief accountant of China’s State Administrator of Foreign Exchange (SAFE), Sun Tianqi, urged governments to pay close attention to digital currencies. He elaborated on the perks of emerging markets such as the crypto market and also discussed the shortcomings of these emerging technologies.
Stressing the drawbacks of the crypto market, Sun asserted that the market has the potential to enable illegal activities such as money laundering, drug trafficking, etc. Therefore, cryptocurrencies should be highly regulated or denied operation altogether.
In addition to that, he emphasized that emerging markets wield their power to grossly disrupt the long standing of the traditional financial world, including foreign exchange management. Facebook’s Libra is no different. Sun reminded the governments of the power they employ and asked for an outright ban of cryptocurrencies if it cannot strictly abide by regulatory rules.
“Financial technology can promote the opening up, innovation and development of a country’s financial market. But it could also bring a lot of illegal cross-border financial activities. This should be a matter of great concern to all countries, especially emerging markets.”
As China moves to embrace emerging markets, it seems all hands are on deck to ensure that the ground rules are set in preparation for the coming native Chinese digital coin.
China’s Latest Crypto & Blockchain Maneuvers
China’s central bank already set up a committee to assess blockchain technology, looking for possible use cases as well as a native virtual currency that would help the country’s stand in the international markets. The native digital coin is also expected to help fend off threats from other virtual assets including Facebook’s Libra.
According to many signs and indications, China’s digital coin may soon be finally ready to hit the markets. For starters, President Xi openly urged the people of China to embrace emergent technologies, instead of shunning them as the Chinese government did all this time.
Using blockchain technology as an example, President Xi opined the technology would be of great help to the country and its economy, statements which analysts surmise that boosted the Bitcoin(BTC)trade price dramatically. Also, China’s Standing Committee rolled out a slew of cryptocurrency laws to help regulate the crypto industry.
With the massive crackdown against crypto that China embarked on over the past few years, it is good news for crypto enthusiasts that now the government is reconsidering its stand on blockchain technology at least.