The People’s Bank of China’s business control department director Zhou Xuedong said that the country’s regulators that they must adopt a forgiving attitude towards exchanges and not restrict their operations. Over the last few months, China’s central bank and the People’s Bank of China has been praised for their efforts to talk with local Bitcoin exchanges and introduce efficient regulatory frameworks.
Zhou Xuedong said:
“In contrast to several authorities’ organizations and regions including Hawaii, which currently forced the main Bitcoin organization Coinbase out of the state with impractical regulations, the People’s Bank of China has been leading round table discussions with local organizations to come to a consensus on which policies should and shouldn’t be adopted.”
Opposite to the authorities’ view of Bitcoin in 2013, a period wherein the People’s Bank of China tried to prohibit Bitcoin as a whole, the People’s Bank of China is demonstrating optimism in the direction of its local Bitcoin business. It brought transparency in Bitcoin buying and selling and reduced marketplace manipulation by pressuring exchanges to implement buying and selling fees of 0.2 %.
According to Zhou Xuedong, the central bank’s vision of Bitcoin improvement and business reputation has changed significantly since 2013. Zhou Xuedong encouraged all of the regulators in the Chinese marketplace to refrain from implementing policies that may harm local organizations and operations dealing with Bitcoin. In the short-term, he mentioned the importance of setting up a clear and obvious business standard, which Bitcoin exchanges can follow. By doing so, exchanges could be in complete understanding of the regulatory necessities before launching their operations to the public.
Even as Zhou Xuedong stated that Bitcoin exchanges could be placed under strict supervision, he additionally noted that in this observation period, regulators would actively talk with local organizations to make sure that the marketplace grows at an exponential rate. Local publications, which includes Sina, further stated that Zhou Xuedong requested regulators to achieve important understanding concerning the properties of Bitcoin. These consist of Bitcoin’s structure, attributes and characteristics. He implied that regulators should not try to modify Bitcoin organizations with a shallow information of the currency itself.
Zhou Xuedong stated:
“In the future, it is important to explore long-term regulatory mechanisms. We need to analyze the properties of crypto currencies like Bitcoin, study the characteristics of Bitcoin exchanges and explore control regulations at a national stage. One of the national regulations that the Chinese authorities and its central bank intend to adopt is the development of a cross-exchange database which will sync consumer identities of exchanges in a single platform.”
Zhou Xuedong mentioned that the People’s Bank of China might also investigate Blockchain if it is necessary. The approval of this kind of policy could intensify know Your consumer and Anti-money Laundering policies even more in the future and will require current exchanges to modify these systems once again.