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Tighter scrutiny, supervision loom for cryptocurrency market, Chinese state media warns
- Xinhua’s commentary on Sunday reminded consumers not to believe in the ‘myth of wealth creation’ from speculative trading of cryptocurrencies
- That followed a statement from the State Council, China’s cabinet, of a further crackdown on bitcoin mining and trading
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Cryptocurrency activities in China will face greater scrutiny and supervision, state media warned on Sunday, as bitcoin’s global sell-off resumed on Friday amid Beijing’s latest crackdown on the trading and mining of digital tokens.
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Communist Party mouthpiece Xinhua said in a commentary published on Sunday that tighter supervision and scrutiny are in order for the cryptocurrency market.
“Compared with traditional investment tools, the risks in the virtual currency market are extremely high, as the market is not mature but with strong volatility, high speculation and lack of clear trading supervision rules,” Xinhua said. Its commentary also reminded consumers not to believe in the “myth of wealth creation” from the speculative trading of cryptocurrencies.
The commentary followed a statement from the State Council’s Financial Stability and Development Committee – chaired by Vice-Premier Liu He, the Chinese president‘s top representative on economic and financial matters – that indicated a further crackdown of bitcoin mining and trading in the country.
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That statement, however, still stopped short of an outright ban on cryptocurrency mining. It also did not elaborate on the measures involved or scale of this crackdown.
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