- The national cryptocurrency trading should integrate an “approval” and a “real name” certification system.
- Education of the public and investors will be paramount to the implementation of the digital platform.
One of the members of China’s political advisory board suggests that the country should look into developing a national cryptocurrency trading platform. The development of the national exchange should come with proper regulatory systems. The suggestions were made at the two annual conferences of China’s top legislative and advisory units.
The member of the Chinese People’s Political Consultative Conference (CPPCC), Wang Pengjie said that the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) should work together to develop a blockchain alongside a digital asset management system. The digital system should have an approval framework that will enable the platform to be launched nationally for cryptocurrency trading.
The news from Pengjie are coming after the cryptocurrency market in China was hit with bans from the government; where the Initial Coin Offerings (ICO) and the trading exchanges were halted from September 2017. Pengjie pointed out the market capitalization of cryptocurrencies like Bitcoin and Ethereum surpassing that of Tencent, the largest Internet provider in China as recorded in January 2018, was a reason for the government pay to attention to the digital assets based on the blockchain technology. He added that both South Korean and the United States are looking at regulating cryptocurrencies.
Pengjie, however, did not stop there, he went ahead to name the issues that the technology brings to China, for example, “lack of mature, independent intellectual property rights [...] will not be good for China's financial security in the long run.” In addition, he said that lack of consumer knowledge could also lead to fraudulent activities, besides, the legality status of cryptocurrency is still not clear citing, “unscrupulous elements dressed in 'Blockchain' garments, causing serious economic losses.”
Pengjie went ahead to propose a solution to the above solutions. The systems should incorporate an “approval system” coupled with “real name” certification. Educating the traders and the investors will also be paramount to the success of the system.
Pengjie said, “Thus we can provide a formal channel for companies to raise funds and for individual investors to achieve capital appreciation.”
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