National Crypto Exchange For China Proposed by Top Political Advisory Member
Wang Pengjie, a member of the Chinese People’s Political Consultative Conference (CPPCC), suggested that the PBOC and the China Securities Regulatory Commission (CSRC) must create a national digital asset trading platform along with the necessary regulatory systems. This was done at the annual conference of China’s top legislative and advisory units.
This comes after a ban by the Chinese government in September 2017 highlighted its tough stance on cryptocurrencies.
Highlighting the growth in the market capitalization of cryptocurrencies over that of Tencent, China’s highest ranked Internet company, Pengjie pointed out the need for focusing attention towards a digital asset economy. He also talked about the softening stance of South Korea and USA over cryptocurrencies.
Pengjie explained the other reasons why regulation was important like “lack of mature, independent intellectual property rights […] will not be good for China’s financial security in the long run.”
In addition, he said that lack of consumer knowledge could also lead to fraudulent activities, besides, the legality status of cryptocurrency is still not clear citing, “unscrupulous elements dressed in ‘Blockchain’ garments, causing serious economic losses.”
The solutions that he has proposed are as follows:
1. There is a need for a national digital asset trading platform.
2. There should be a national approval system based on the Blockchain for digital asset management.
3. Along with these platforms, trader and investor education should be a key mandate.
By doing this, Pengjie believes that it would “provide a formal channel for companies to raise funds and for individual investors to achieve capital appreciation.”
The proposal made highlights the forward thinking nature of Pengjie towards the benefits of integrating digital assets within the Chinese economy. But it also shows that the ban on cryptocurrencies has not deterred the Chinese people from investing into cryptocurrencies or forgetting about blockchain overnight. One of the side effects of this is that many Chinese people are getting caught in scams even after the ban.
It is intriguing to see how it will be taken by the top brass of the Chinese regulatory authorities. A positive move would mean a great step forward for global adoption.
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