China Central Bank Must be In Charged for Bitcoin AML

China Central Bank

Development information in China have surfaced nowadays especially with regards to new policies about the bitcoin transactions of China. It was on the day of March 9, when a local reporter was informed by the congresswoman for the National People’s Congress and past deputy governor of the People’s Bank of China (PBOC) named Wu Xiaolin that central bank should be the one in charged for such types of bitcoin trading platforms

Bitcoin, A Digital Asset in China

Since that Bitcoin market engages a substantial part of anti-money laundering (AML), management of other countries currency and payment agreement, the congresswoman is convinced that PBOC should be responsible for its regulation. It was explained by Wu that inspections recently were a must therefore saying that bitcoin is not used as means for the purposes of money laundering.

Wu is positively hopeful that the country’s people involved with bitcoin transactions will be compliant with the recent regulatory policies. She, however, conveyed that bitcoin transactions have then been considerately cooperative as well as had conducted out self-examinations.

It was mentioned in the translated commentary of the Chinese Congresswoman that blockchain technology is the home of successful application called Bitcoin. She also quoted additionally about certain government and regulators today do have differing preferences on bitcoin.

Hence, saying that Bitcoin in their country China is considered a digital asset. Other nations somehow considers it as a currency which is decentralized with a compensation characteristics that is not legal.

Further Development of Financial Technology Needed as by Chinese Central Bank

Regulation but not banning of the digital currency should be done as communicated by the Congresswoman in one of her talks about bitcoin in the past.

Wu also added that both bitcoin and virtual currencies issued but the government can exist side-by-side. Both Wu and a number of her colleagues agrees that issues are insignificant only with regards to bitcoin given that it is observed.

At the same time, a certain Zhou Xiaochuan, who is the governor of PBOC recently remarked regarding China’s vision with regards to financial technology.

Xiaochuan explained that it immensely encouraged by the central bank to develop further the financial technology. Additionally, blockchain, digital currencies as well as other technologies surely will an impact that is unpredictable. However, the challenges that will be met must be supervised during the process of development.

Chinese Regulatory Exertion To The Global Standards of AML Monitored by U.S. Administration

All the while during the current PBOC investigation, a statement made by the INLEA or International Narcotics and Law Enforcement Affairs as a reported by the State Department of the US with regards to some other countries’ as well as China’s s approach to the execution of financial management.

The report by INLEA gave a comprehensive overview about the current official crackdown with the China’s financial sector conducted by PBOC. Those remarks implied that the US administration is hopeful for China’s positive sustainability to AML legal improvement as well as its regulatory structure concerning digital currencies and also the underground financial organizations.

The statement by INLEA concluded that China should abide with the enforcement of the international law to check the effect of domesticated Chinese virtual currencies, underground financial organization, as well as transfer of trade-based value utilized not only for forbidden outgoing transmission but also for incoming remittances and criminal revenues.

Not only the bitcoin market but also the other sorts of monetary exchange transactions has been tremendously scrutinized by the different sectors such as the PBOC executives, politicians and also the Chinese regulators.

Written by Melvin Draupnir on March 15, 2017.