One of China’s digital finance regulator’s high-rank officials has called for the country’s supervising authorities to build a framework of more stringent regulations in order to keep up the development of cryptocurrencies, while the government clamps down on virtual tender trading.
Chinese authorities are clamping down on the market, trying to mitigate the financial risks as consumers flock to a precarious and speculative sector that sky-rocketed this year.
The country’s top bitcoin exchange platform reported yesterday it would cease any trade deals starting the last day of September, triggering a plunge in the price of the virtual currency, which now is 30% down from the peak it reached earlier this month.
National Internet Finance Association of China’s Li Lihui today during a conference in China pointed out that world regulators must cooperatively work on cryptocurrencies. Virtual currencies should be delimited, those researched and created by authorities like the central bank of China, and those like bitcoin which are digital tokens, having no support from a state, he also said.