China to maintain crypto crackdown, monitor overseas

China's central bank will continue to crack down on domestic operation and speculation and monitor overseas development of cryptocurrency, said Pan Gongsheng, Governor of the People’s Bank of China.

Addressing a conference in Beijing on Monday, Pan said the virtual currencies, especially stablecoin, are still in the early stage of their development despite the emergence in recent years.

Pan noted that international financial organizations and central banks remain prudent about stablecoin.

Citing the discussions among government treasurers and central bank governors, Pan said stablecoin as a financial activity currently can't meet the basic requirements like customer identification and anti-money laundering, amplifying loopholes in global financial regulation.

In addition to the speculation frenzy in markets, the rise of stablecoin is increasing the vulnerability of the global financial system and undermining the monetary sovereignty of some less developed economies, the PBOC governor said.

Pan highlighted that the policies and measures rolled out by PBOC to combat the cryptocurrency-related risks are still effective. Thus, the central bank will continue to work with law enforcement agencies to crack down on relevant activities within mainland China to safeguard economic and financial order.

Meanwhile, PBOC will closely monitor and assess the development of stablecoins in overseas markets, Pan added.