According to a new announcement, the Chinese government plans to carry out government reform. This includes the introduction of a new national financial regulator.
On Tuesday, March 7, The government announced that its current banking and insurance watchdog, the China Banking and Insurance Regulatory Commission (CBIRC), will be abolished.
The responsibilities of this commission will be transferred to a completely new administration, as will certain functions of the central bank and the securities regulator. The legislature will vote on an institutional reform plan on Friday, March 10.
When it comes into operation, the new financial regulator “will strengthen institutional supervision, supervision of behaviors and supervision of functions”according to the plan.
At present, the Chinese financial sector is under the supervision of the People’s Bank of China (PBOC), the aforementioned CBIRC, and the China Securities Regulatory Commission.
This announcement comes after the country’s President Xi Jinping called for reforms to party and state institutions in China.. These reforms will also include an office for sharing and developing data resources, which will partly replace the functions of the current Office of the Central Commission for Cyberspace Affairs.
Although the Chinese government announced new plans for its financial sector, no reforms for the crypto industry were specifically mentioned. However, in February, a former PBOC adviser called on Beijing regulators to reconsider their harsh ban on cryptocurrencies.
In 2021, China banned almost all cryptocurrency transactions. Nevertheless, The government has been spending millions developing its own central bank digital currency (CBDC), the digital yuan.
One of the most recent updates to the digital yuan project was the addition of new smart contract functionality and new use cases, including buying securities and offline payments.
On February 8, China announced a new state-backed institution, the National Blockchain Technology Innovation Center, to accelerate the country’s industry through blockchain technology.
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