Beijing Official Calls for More Blockchain Rules

Blockchain, News, Regulation | March 28, 2017 By:

A Beijing municipal finance official has called for more standardization in blockchain development.

Municipal Bureau of Finance secretary Huo Xuewen was quoted in Sina Finance as calling on the Chinese federal government to adopt a standard approach to blockchain development, adding that digital currency lacks credibility and acts as cover for criminal activities.

His statements reflect a continuing concern of Chinese officials with digital currency and blockchain activity. The government has frozen withdrawals from exchanges since the beginning of the year, putting the brakes on the rapidly developing blockchain community.

While conceding that blockchain brings “convenience and efficiency,” he decried the lack of “clear rules and norms.”

It is unusual for a municipal official to address national concerns in China. There is a strict protocol for addressing public matters and responses are usually segmented.

China’s central bank, the People’s Bank of China (PBoC), recently completed a trial run of its own  cryptocurrency based on blockchain technology. If launched, it would make the Chinese central bank the first to issue its own digital currency. The Chinese government has been concerned with capital outflows from the country and has limited it since last year.