China’s Central Bank Calls For Strengthening Blockchain Regulations
China’s Central Bank has issued recommendations to manage blockchain to curb risks.
China’s Top Bank Questions Blockchain Success
China’s central bank has urged authorities to impose further supervision on the speculative investment that appears to be common throughout the blockchain industry. The bank’s research branch has published a progress paper title ‘What blockchain can do and cannot do?’ A review of the paper shows that the bank research team is looking at the implications of blockchain and other projects geared toward commercializing the sector.
The bank is, therefore, rooting for a controlled approach to the blockchain sector. From the paper, the bank is advising against overestimating blockchain. According to the bank, over the last three years, some of the blockchain applications launched have not been successful especially in the financial industry.
The bank adds that to date, innovation in the tech sector has not had any massive impact on the financial sector and blockchain is not an exclusion.
The Central Bank further urges concerned state agencies to enhance oversight of the financial sector. The bank claimed that public token fundraising via ICOs violate a number of regulations. Recently, the Chinese government banned all ICOs.
The paper adds that the present blockchain bubble is something obvious. The bank adds that problems like price manipulation, violation of laws and ineffective regulations are common. Government agencies have been urged to ensure that risks are minimized at all costs.
Prior to the release of the paper, a public notice was issued by the bank, warning investors to be on the lookout for risks within the cryptocurrency market especially in ICOs.