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Bitcoin Speculation Is Risky Said the PBOC Financial Stablity Report 2017

4 July Beijing- PBOC released the National Financial Stability Report of 2017, in which speculation around Bitcoin is mentioned as “risky” in the Banking Sectors section. The report reiterates that PBOC will stick to “prudent and neutral” policy and “keep liquidity relatively stable and credit growing at a reasonable pace.” Meanwhile, the authority will “closely follow the latest developments” in the domestic and global economies while keeping an eye on international capital flows.
The report is compiled by a team led by Fan Yifei, one of the four VPs of PBOC. The report is in annual series. Bitcoin is mentioned on the 49th page of the 162-page report in Chapter 3: Banking Sectors, which is the first time that Bitcoin or cryptocurrencies are mentioned in the annual report.

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“Illegal fundraising cases have been frequently reported in the area of non-government financing agencies, online p2p loaning platform, farmer cooperative associations, real estate industry, private funding and other sectors”

the report said.

“Some internet financial companies have lost the correct direction for innovation and failed to establish regulations for AML and Anti Terrorism Financing. Lots of unlicensed entities are engaged in financing activities.”

“Speculation on Bitcoin and certain virtual goods by some investors is risky to a certain extent.”

It’s easy to connect such statement with the regulatory storm on Bitcoin exchanges not long ago. It wasn’t until this June that traders were allowed to withdraw BTC from major exchanges.

The report also stress the importance of regulation, saying that

“cross-sector risks should be closely monitored and coordination of financial supervision should be strengthened to form a joint force that prevents gaps in financial regulation”

Some Chinese OTC traders claimed that their bank accounts had been blocked for reasons undisclosed even after they visited bank counters for clarification.
Effective from 1 July, foreign currency exchange transaction over 10,000 USD or 50,000 CNY would be submitted to the authority. Traders who attempt to evade foreign exchange quota would be added to the “watch list”. Once listed, the person is not entitled to enjoy the 50k USD foreign exchange quota in the next two years and facing a penalty up to 50,000 yuan.
It’s generally believed that Bitcoin could facilitate cross-border capital flow due to its decentralization feature. It’s also noteworthy that the 5th National Financial Conference would be held on 14 July. The five-yearly conference originated from 1997, when the financial crisis hit the Asian countries.

COMMENTS(3)

  • BitcoinAllBot
    4 months ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • 101111
    4 months ago 101111

    All speculation is risky by definition.

  • 8btccom
    4 months ago 8btccom

    can’t deny that.

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