Pan Gongsheng, vice governor of the People’s Bank of China is reportedly calling for a wider ban on services related to cryptocurrency trading in the country.
He said that to prevent market risk, the government would apply more strict regulation to end all cryptocurrency trading-related activities and services. The news comes via a Reuters report, citing an internal memo reviewed by the news agency.
While it’s not yet clear whether the reported memo will become immediate policy, the news indicates the continuing severe stance taken by China’s top regulators towards curbing cryptocurrency speculation and lowering perceived financial risk in the country.
According to the report, Pan said in the memo that a wider ban should extend to services and activities including individual or institutional market-makers, centralized trading platforms, guarantors, or settlement providers like online cryptocurrency wallets.
Further, Pan also doubled down on China’s recently reported clampdown on domestic cryptocurrency miners.
According to the memo, he told assembled regulators and policy-makers:
“Pseudo-financial innovations that have no relationship with the real economy should not be supported.”
As reported at the turn of the year, China’s central bank is looking to scale down domestic bitcoin mining leading “toward an orderly exit” altogether. Chinese bitcoin miners have already established or in the process of finding viable alternative locations in countries like Switzerland and Canada.
Back in early September, Chinese regulators banned initial coin offerings (ICOs) in the country and also subsequently required domestic exchanges to suspend crypto-to-fiat currency order-book trading services.
Following the restrictions, major exchanges in China have shifted business focus to over-the-counter (OTC) and overseas crypto-to-crypto trading – services that are currently still available for residents in China.
The report indicates that Pan is now seeking collaboration from both central and local authorities to investigate and subsequently block any domestic or foreign platforms that allow investors in China to participate in cryptocurrency trading.