People's Bank of China brags about crackdown on the 'pseudo-gold exchanges' of crypto
China is in the early years of a battle to regulate tech it doesn't like, and one area of especial focus has become crypto. This is because China was at one point ground zero for crypto-mining operations in particular and the industry boomed there before the regulators began to get a grasp on it: but once the CCP began taking notice of crypto, it didn't like what it saw one bit.
One year ago China made cryptocurrency transactions illegal and now the People's Bank of China has issued an update via the country's popular WeChat platform (thanks, The Register(opens in new tab)). It's naturally full of praise for our good friend Xi Jinping's leadership, and covers several areas of finance as well as crypto, with what seems to be pretty disparaging language: at one point referring to crypto markets as «pseudo-gold exchanges» which is pretty funny.
All quotations attributed to the bank here have been through a machine translation and lightly edited for sense.
The People's Bank of China says it has been «comprehensively cleaning up and rectifying the financial order» with regards to bitcoin in particular, referring to the successful completion of «special rectification of Internet financial risks.» If you're wondering what a special rectification is, the bank is talking about the shutdown of «nearly 5,000 P2P online lending institutions».
The P2P element is crucial in why the CCP dislikes crypto: peer-to-peer trading is inherently hard to control. This financial note's overall theme is about banking stability and how secure China's financial system is: all of which is what you'd expect the CCP's bank to say about the CCP's economic policies, of course. P2P trading is not stable in this macro sense, it's hard to regulate, and
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