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<p>The post <a href="https://coinpedia.org/news/chinas-central-bank-urges-global-crypto-oversight-for-safer-financial-regulations/">China Pushes for Global Crypto Regulation, Proposes Six-Point Blueprint</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The <a href="https://coinpedia.org/news/arthur-hayes-predicts-surge-in-bitcoin-investment-from-china/">People’s Bank of China (PBC)</a> has intensified its examination of crypto assets in its recent Financial Stability Report for 2023. The report highlights the rapid growth of the global crypto market and emphasizes the importance of consistent oversight. It calls for uniform regulation across the board, stating: “same business, same risks, same supervision.”</p> 
<h2 class="wp-block-heading" id="h-a-push-for-global-collaboration"><strong>A Push for Global Collaboration</strong></h2> 
<p>The <a href="https://r.img.cctvpic.com/photoAlbum/page/20231222/2023122218161782885.pdf?spm=C73544894212.P59511941341.0.0&amp;file=2023122218161782885.pdf">PBC report</a> stresses the need for international cooperation in regulating crypto assets. It notes France’s recent acknowledgment of crypto risks, signaling a growing international consensus on the matter.</p> 
<p>The report also identifies concerns related to crypto assets, including insider control, hidden asset transactions, and data security issues with blockchain technology. While crypto assets remain somewhat distinct from traditional financial systems, their increasing volatility and speculative nature have been of concern since 2022.</p> 
<p>Read More: <a href="https://coinpedia.org/crypto-live-news/china-to-establish-industry-standards-for-web3-and-nfts/">China to Establish Industry Standards for Web3 and NFTs!</a></p> 
<h2 class="wp-block-heading" id="h-steps-to-secure-the-defi-ecosystem"><strong>Steps To Secure the Defi Ecosystem</strong></h2> 
<p>To address these challenges, the PBC outlines a six-part strategy. This includes focusing on access, internal controls, operational aspects, governance, exit strategies, and enhanced supervision. The report also examines governance models in decentralized finance (DeFi) and warns of potential risks from transparent cross-border transactions.</p> 
<p>Despite crypto assets making up only 1% of the global financial system, the report emphasizes the need for regulatory changes and market reforms. It suggests updating registration systems and empowering regulatory bodies with a “negative feedback” mechanism to manage market risks.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/china-advances-in-the-global-digital-currency-race-with-innovative-features-and-a-dedicated-industrial-park/">China Advances in the Global Digital Currency Race with Innovative Features and a Dedicated Industrial Park</a></p> 
<h2 class="wp-block-heading" id="h-learning-from-the-past">Learning from the Past </h2> 
<p>The PBC report references specific incidents, such as the FTX collapse and fraudulent activities in <a href="https://coinpedia.org/glossary/defi/">DeFi</a>. It calls for proactive measures to address potential issues like mismatched financial obligations and excessive leverage. Additionally, given the cyber threats facing crypto assets, the report stresses the importance of international collaboration to address security concerns.</p> 
<p>In conclusion, the PBC’s report underscores its commitment to a thorough regulatory framework for crypto assets. With an emphasis on international cooperation and regulatory restructuring, the goal is to mitigate risks and strengthen the global financial system.</p>

China Pushes for Global Crypto Regulation, Proposes Six-Point Blueprint

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