- He will take over the supervision of the banking segment and cryptocurrencies
- In practice, this means that censorship in China will become even tougher.
- At the same time, new rules will be adopted faster due to the strong centralization of power.
At the moment, the financial sector of the PRC is controlled by three departments – the People’s Bank of China, the Securities Regulatory Commission (CSRC) and the Banking and Insurance Regulatory Commission (CBIRC). But soon this will change.
Today, March 7, the National Assembly of People’s Representatives was held. During it, the authorities announced a plan to tighten control over the financial sector.
Among other things, it provides for the creation of a new department – the National Administration of Financial Regulation. She will take over the powers of the CBIRC, which will be abolished.
Moreover, part of the NBK’s responsibilities will be transferred to the new regulator. And, as expected, the entire cryptocurrency segment. This is how a representative of Pingtan Strategic Asset Management Co. commented on the situation. For Bloomberg:
“The goal of this new regulator is to make sure we cover some of the blind spots in controlling illegal financial practices. We will collect everything “under one roof” so that no one can escape responsibility.”
In practice, this means that censorship in China will become stricter. It will also speed up the adoption of new laws, as the centralization of power has become even stronger.
Interestingly, the CSRC has retained its independence. This emphasizes that official Beijing sees the rapid growth of the stock market in China and does not want to put pressure on it.
Earlier we talked about the hype around China in the crypto-information field. About what the Chinese narrative is and how to make money on it in our material.