Former PBOC member criticizes China’s ban on crypto

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Huang Yiping, a former monetary policy member of the People’s Bank of China (PBoC), has expressed concern that China has missed financial development opportunities following the country’s ban on cryptocurrencies.

Cryptocurrency adoption linked to growth opportunities, says former PBoC member

While the PBoC has its reasons for banning virtual currency operations, Yipping notes that the central bank should do this. Long-term benefits are consideredDigging deep to feel a FixedA workable strategy.

In his assessment, banning cryptocurrency-related activities was practical in the short term. Banning crypto risks leaving people out of significant growth opportunities.

He acknowledges that cryptocurrency has ushered in new digital technologies. Yipping echoed his stance on virtual currency adoption, saying they are valuable to the formal financial system.

China’s relationship with crypto is chilly, although citizens are allowed to own digital assets. In addition to censoring crypto “whale” investors, according to Chinese journalist Colin Wu, the country 20% tax on profits From crypto trades and mining to specific investors.

The current crypto taxation framework is not fully defined due to the ban. Therefore, the mixed regulatory stance may present the need for the country to legalize cryptocurrency.

What’s Behind China’s Cryptocurrency Ban?

By the end of September 2021, China Banned cryptocurrency trading and limited its population use. The PBoC cited several reasons, including linking virtual currencies Money Laundering ActivitiesDevaluation of the Yuan and capital flight.

While the ban had implications for the cryptocurrency market, it allowed the US to remain the world leader in crypto mining.

Recent reports suggest that there are discussions on integrating the Chinese financial system and the crypto economy. The state authorities are studying and consulting on this matter especially the taxation measures.

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