China Central Bank Assesses the Crypto Sector: Collaboration is Needed! - Coin Bulletin

The People's Bank of China has released this year's "China Financial Stability Report." The report highlights important details on global cryptocurrency regulations, with particular emphasis on developments in Hong Kong's regulations.

The report states that the growth in the cryptocurrency market carries some risks in terms of financial stability. Therefore, it is emphasized that many countries are increasing their regulatory measures for crypto assets.

The report highlights regulations in places such as the United States, the European Union, the United Kingdom, Singapore, and Japan. While spot crypto ETFs are approved in the US, the European Union is preparing to implement MiCA to regulate the crypto sector. Meanwhile, the United Kingdom has accelerated its regulations in this area by including crypto assets in the financial services law.

While Singapore is developing a regulatory framework specifically for stablecoins, Japan has limited stablecoin issuances to licensed banks and trusted financial institutions only.

Work continues in Hong Kong

Hong Kong's cryptocurrency regulations also stood out in the report. Hong Kong applies different regulations to virtual assets by categorizing them into two categories: 'security-type tokens' and 'non-security tokens.' In this context, security-type tokens are regulated under the Securities and Futures Ordinance, while non-security tokens are licensed under the anti-money laundering law. Additionally, it is noted that major financial institutions such as HSBC and Standard Chartered are required to include cryptocurrency exchanges in their daily customer due diligence processes.

Finally, the report highlights the importance of international cooperation for monitoring the global crypto asset ecosystem, preventing financial risks, and filling regulatory gaps. China's cautious approach in this field aligns with the goal of maintaining financial system stability.