People's Bank of China Calls for Global Crypto Regulation in New Financial Stability Report
Summary:
The People's Bank of China (PBoC) has highlighted the need for international cooperation in regulating cryptocurrencies and decentralized finance (DeFi) in its latest financial stability report. It is the first time the bank has explicitly mentioned cryptocurrency assets, noting potential threats including hacker attacks, market manipulation and DeFi governance mechanism concerns. It urged for the management of regulatory fragmentation and the elimination of supervision inconsistency.
In its most recent report on financial stability, the People's Bank of China (PBoC) tackled subjects involving the oversight of digital currencies and decentralized finance (DeFi). In the new report, the nation's central bank set aside a distinct section to discuss cryptocurrency holdings, emphasizing the importance of international cooperation in industry regulation.
The report, as noted by local sector reporter Colin Wu, is the first time the PBoC has explicitly referenced digital assets, advocating for governing bodies to adopt a principle of “the same business, the same risks, the same supervision” to circumvent regulatory inconsistency.
The report pointed out potential threats originating from jurisdiction differences in cryptocurrency regulation, including susceptibility to hacker attacks, market mishandling, and DeFi governance mechanism issues. The PBoC particularly cited the implosions of the Terra ecosystem and the FTX exchange, insisting on the handling of regulatory disparities to eliminate supervision inconsistencies.
This story is still unfolding and more details will be provided as they arrive.
Published At
12/22/2023 3:40:03 PM
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