BEIJING – The People’s Bank of China has stressed the importance of establishing uniform regulations for cryptocurrencies, to improve data consistency and strengthen regulatory oversight. This call for action comes as part of the latest financial stability report released today by the central bank, which dedicates a new section to the risks that cryptocurrencies pose to the financial system.
The report identifies several concerns regarding digital currencies, including the potential for market manipulation and cyber risks. These risks have been highlighted following high-profile incidents such as the collapse of and fall of FTX, which highlighted the vulnerabilities of the cryptocurrency market.
In its analysis, the People’s Bank of China highlights the need to take comprehensive measures to close existing regulatory gaps. The authorities hope this will mitigate the systemic risks that cryptocurrencies could pose and protect investors against future market disruptions.
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