China Crypto Roundup: CBDC Highlighted Again, Binance Inching Back to Asia
In recent Chinese cryptocurrency news: the digital yuan was highlighted again in the central bank’s annual meeting this year, at almost the same time, the PBoC-backed internet finance regulatory organization issued a warning against virtual currency. Crypto exchanges keep expanding while seeking compliance, with Binance seems to be making its way back into Asia going by recent moves, and OKCoin going to Japan.
China will undoubtedly pursue digital yuan
“The People’s Bank of China (PBoC) will undoubtedly further its research and development of the national digital currency with enhanced top-down design,” the bank said in the 2020 National Currency Gold Silver and Security Work Video and Telephone Conference on April 3.
This was the third time the Digital Currency Electronic Payment (DCEP) was mentioned in PBoC’s annual meeting. This year’s statement indicates a firmer stance on the project amid the Coronavirus outbreak with fears of further transmission of the virus through the everyday use of bank notes.
The central bank has reportedly completed basic function development for a digital yuan. This pushes China one step closer to its CBDC launch.
Regulator warns against cryptocurrency speculation
While China’s central bank was sending one of its strongest signals yet of a commitment to creating its CBDC, the PBoC-backed internet finance regulatory organization warned against virtual currency speculation.
The National Internet Finance Association of China (NIFA) warned investors that cryptocurrency exchanges located outside of the country are engaged in manipulative practices, and further accused these exchanges which had fled offshore after the 2017 crypto ban of liquidating leverage traders during times of peak volatility.
Binance inching back to China
Among those that left China after the PBoC’s crackdown on crypto exchanges in 2017, Binance seems to be making its way back to China with all its recent moves.
On March 31, Binance Academy, the exchange’s non-profit educational arm, announced it had established a blockchain research institute in Shanghai, which is deemed as the exchange’s first compliance base of operations in the country since 2017. Though a small step, more developments from the exchange in the country are expected to come. As its CEO Chaopeng Zhao tweeted, “most people may not understand the underlying shift that just happened. But that’s fine.”
In its latest eye-catching moves this past week, Binance has reportedly made a $400 million bid for the most popular crypto market data platform CoinMarketCap, and is set to roll out its own crypto mining pool.
OKCoin moves into Japan
While major crypto exchanges like Binance are continuing their business expansions and global presence, OKCoin, one of the oldest exchanges in China, said it has officially secured licensing in Japan.
According to the firm, this makes OKCoin the first international exchange to obtain a cryptocurrency exchange license through the official application procedure in Japan.