PBoC Highlights Crypto Regulation in its Annual Financial Stability Report

In its annual financial stability report, the People’s Bank of China emphasized the regulation of cryptocurrency and noted that Hong Kong is actively exploring licensing for these assets. This comes as the mainland continues to prohibit cryptocurrency trading.

According to the report released on Friday, 51 countries have either banned or restricted cryptocurrency assets, with some countries modifying existing laws or implementing new regulations.

While the central bank and other authorities in China banned all crypto trading and mining activities in September 2021, Hong Kong has opened its doors to crypto firms. In June 2023, it officially introduced a licensing system for cryptocurrency trading platforms, allowing licensed exchanges to offer retail trading services.

The PBoC also mentioned that Hong Kong requires major financial institutions, including HSBC and Standard Chartered Bank, to monitor cryptocurrency transactions as part of their routine customer supervision.