China is set to launch a new regulatory body to expand its governmental oversight.
The Chinese government wants to establish a new financial regulatory body responsible for oversight. This body would aim to solve the loopholes created when different organizations monitor various aspects of its trillion dollars finance industry.
According to the Reuters report published on March 7th, the Chinese government is actively working on this new body and its role in the finance industry.
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The move would make the People’s Bank of China (PBOC) no longer responsible for overseeing financial holding firms and consumer protection. The bank will be restricted to focusing on financial and economic stability management on a broader scale.
On the other hand, the new body will be responsible for consolidating oversight and will take on some of the central bank’s responsibilities. It will be a financial watchdog responsible for all the other sectors in the financial industry apart from the securities market.
However, it did not comment on its crypto industry reforms. It is worth noting that a former People’s Bank of China advisor recently called Beijing financial regulators to reconsider its strict crypto ban.
The crypto ban was a phenomenon that took place in China in 2021. That year, the Chinese government banned all crypto-asset transactions. However, the government has invested millions of dollars in building the digital yuan, its own Central Bank Digital Currency (CBDC).
The government has also announced the establishment of a bureau for development and sharing coordination for data resources. The plan for this organization was submitted to the Chinese parliament on March 7th.
In other China-related news, the Chinese social media giant and payment app WeChat has integrated digital yuan into its payment platform to enable faster payments and boost the adoption of digital assets.
