The People’s Bank of China has addressed issues related to the regulation of cryptocurrencies and decentralized finance (DeFi) in its latest financial stability report.
The People’s Bank of China (PBoC) has addressed issues related to cryptocurrency regulation and decentralized finance (DeFi) in its latest financial stability report, in which it calls for a worldwide effort to establish crypto rules.
The Chinese central bank devoted a separate section to cryptocurrency assets in its new financial stability report, stressing the need for the industry to be regulated using joint efforts by different countries. Published on Dec. 22, the report says the cryptocurrency market accounts for 1% of the global financial system, and its connection with traditional finance is limited.
According to local industry journalist Colin Wu, PBoC’s latest financial stability report has devoted a separate section dedicated to crypto assets for the first time ever. In the report, the central bank called on governments worldwide to apply the approach of “same business, same risks, same supervision” to avoid regulatory arbitrage.
