“Currency circle” must continue to “shrink the circle”

Recently, the People’s Bank of China mentioned at the work conference in the second half of 2021 that it supervised and guided platform companies to make comprehensive rectifications in accordance with regulatory requirements, and maintain a high pressure on virtual currency trading hype. Immediately afterwards, the Shanghai Headquarters of the People’s Bank of China stated that it will continue to guard against the risks of virtual currency transactions and ICO token issuance, and urge the rectification of newly discovered illegal businesses.

The supervisory level once again released strong supervisory signals because of the recent rise in virtual currency speculation. Since late July, the price of Bitcoin has risen one after another, breaking through from US$29,000 to US$42,000, a new high since May. “Bitcoin is expected to exceed US$100,000 in 3 years”, “Bitcoin is undervalued by the market and will rise to US$700,000 in the next 10 years” and other high-profile propaganda have been on social media one after another. Another round of “currency circle” craze that has made a comeback is an urgent need for supervision to cool down.

Regarding the issue of virtual currency trading hype, my country’s regulatory authorities have always been clear and resolute. As early as 2013, the central bank and other five departments jointly issued a notice stating that virtual currency is not issued by the monetary authority, is not a real currency, and cannot and should not be used as currency in the market. The central bank and other seven departments jointly issued an announcement in 2017 to stop the issuance and financing of various tokens and carry out special rectification. Since May of this year, in response to the sudden rise and fall of virtual currencies, and the chaos, the regulatory authorities have quickly attacked: on the one hand, they cut off the trading channels of financial institutions and payment institutions to participate in the virtual currency market, and on the other hand, they have cleaned up and rectified domestic mining activities. Extinguish the “virtual fire” of virtual currency hype in all directions.

The purpose of showing an iron fist on virtual currencies is to help investors recognize the high risks behind the hype of virtual currencies and resolutely prevent individual risks from being transmitted to the social field. At present, virtual currency has become a payment tool for some money laundering and illegal economic activities. A large number of speculators participate in it, through price manipulation, to attract unidentified ordinary investors to enter the market, with the ultimate goal of “cutting leeks.” At the same time, in order to avoid domestic supervision, virtual currency transaction hype “bypass” overseas and avoid the bank payment system, which may not only affect financial security and social stability, but may even bring risks to the international currency and payment settlement system. .

Even under the heavy pressure of supervision, the hype of virtual currency has cooled in the past two months. Several trading platforms have announced the suspension of services in China, some “mining” companies have moved their equipment overseas, and well-known “coin circles” announced Withdraw from the circle, but there are still some platform institutions and investors who have a wait-and-see attitude and a fluke mentality, dormant in the “circle”, ready to move out at any time.

To maintain a high pressure on the virtual currency trading hype is to break this illusion and leave no opportunities for speculation. For platforms and institutions involved in virtual currency transactions, one case was discovered, investigated and dealt with, and law enforcement was carried out with an iron fist; for entities responsible for using virtual currency to engage in money laundering, smuggling and other illegal and criminal activities, one case was discovered, one case was punished, and the deterrence of rectification was strengthened; For invisible transactions over the counter and underground, cross-border supervision and cooperation should be strengthened, account identification and tracking capabilities should be improved, and penetrating supervision should be used to make illegal and criminal activities invisible.

The public should also realize that virtual currency is by no means a profitable investment product. It is necessary to enhance risk awareness, establish correct investment concepts, stay away from relevant trading hype activities, and actively participate in rectification and promptly report relevant illegal clues. As long as a strong synergy is formed to rectify the virtual currency speculation, the “currency circle” will continue to “shrink the circle.”


Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/currency-circle-must-continue-to-shrink-the-circle/
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