China’s top political advisory board’s member has offered the creation of a national cryptocurrency exchange and other regulatory systems at one of the 2 yearly sessions of China’s top lawmaking and advisory bodies, according to the report, March 3.
W. Pengjie, а participant of the Chinese People’s Political Consultative Conference (CPPCC), supposed that the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) should make a Blockchain and digital asset management “approval system,” as well as raised the opportunity of founding a digital asset trading platform at a national level.
Pengjie’s notes come after a recent stream of crypto forbids from China, from blocking foreign exchanges to the September 2017 prohibition of Initial Coin Offerings (ICO).
He brought up the growing total market cap of digital assets like Ethereum (ETH), Bitcoin (BTC), and Litecoin (LTC), noting the fact that their market caps exceeded that of China’s largest Internet supplier Tencent in January 2018 as a reason for China to pay attention to Blockchain-based technologies. Also, he mentioned S. Korea’s crypto regulations, and the fact that the US Nasdaq is considering trading in Bitcoin futures as other impulses.
Also, Pengjie mentioned the problems that working with Blockchain brings up for China, first saying that the “lack of mature independent intellectual property rights […] will not be good for China’s financial security in the long run.” He also referenced the absence of clarity surrounding the legal status of cryptocurrencies as well as the absence of customer info that could “easily” lead to cheating by “unscrupulous elements dressed in ‘Blockchain’ garments, causing serious economic losses.”
According to Pengjie, a probable solution to these problems, is the creation of the aforesaid “approval system,” as well as implementing a “real name” system certification in conjunction with thoroughly educating investors on Blockchain and cryptocurrencies.
Also, Pengjie supposed creation a national Blockchain digital asset trading platform, teamwisely regulated by the PBOC and CSRC:
“Thus we can provide a formal channel for companies to raise funds and for individual investors to achieve capital appreciation.”
CSRC had signed a deal of financial technology partnership with Australia in November 2017, aimed at promoting fintech innovation between the 2 countries. The PBOC’s prohibition of foreign cryptocurrency exchanges, on top of the other ICO and “exchange-like service” limitations, in part led to Bitcoin falling under $7000 last month, for the first time since November 2017.