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China tightens currency turnover ...

China Tightens Currency Trades Ahead Of Digital Yuan Launch
CONTENT

  • China tightens financial turnover due to US threat to cut off dollar flow into the country.

  • Conflict with Hong Kong and trade war with the US could hit international business hard.

  • Regulations will begin to take effect from July.

International consortium of news organizations developing transparency standards.

Chinese authorities tighten financial control over the circulation of funds in the country amid the launch of the national digital currency.

China tightens currency turnover ...

China is stepping up surveillance of large cash transactions to stem capital flight. This is reported by Nikkei Asia, referring to the order of the banks in Hebei province.

Starting in July, financial institutions in this province will be required to track any cash transactions over RMB 100,000 (~ $ 14,100) and report them to the country’s central bank.

It is also reported that cash flow will tighten in Zhejiang province and Shenzhen city.

For them, mandatory monitoring will take effect in October this year with a threshold of 200,000 yuan (~ $ 28,200) for individuals. For legal entities, tracking transactions will start from 500,000 RMB (~ $ 70,500).

Thus, writes Nikkei Asia, the Chinese authorities want to resolve the issue with a significant outflow of capital from the mainland, which is brewing due to the trade war between China and the United States..

West wind of change

Tightening regulation, Chinese regulator warns against the threat of shutting down the dollar flow to the region amid the scandal over the independence of Hong Kong.

China is tightening currencies ...

Beijing, however, does not intend to resolve the situation solely by strengthening financial monitoring in the country..

To save the economy, authorities plan to launch the digital yuanChina’s financial regulator has been working on creating a digital asset for several years. During this time, a large number of … More by the Winter Olympics 2022, which will be held in Beijing.

By creating a national digital economy, Beijing will completely resolve the issue of market regulation and anonymity of cash flow.

China’s interest in the digital economy is driven not only by the current conflict with the United States, but also by the potential threat from the American stablecoin from Facebook.In June 2019, Facebook announced preparations for the release of the digital currency Libra. The social networking project instantly attracted attention … More titled LibraIn June 2019, Facebook announced preparations for the release of the Libra digital currency. The social networking project immediately attracted attention … More.

Initially, the idea to develop a digital currency as an alternative to Libra appeared in the private sector, but later the idea was supported by the government..

No cryptocurrencies

However, the development of the digital economy does not mean that China will be more loyal to the cryptocurrency market. Beijing has long made it clear that the uncontrolled circulation of virtual assets will be severely suppressed.

Recently, for example, the editorial staff of BeInCrypto wrote that the Chinese authorities have launched a large-scale campaign to regulate the circulation of cryptocurrency funds through bank accounts..

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China is tightening currencies ...

It is assumed that tens of thousands of bank accounts involved in over-the-counter (OTC) transactions with cryptocurrencies were raided by the regulator.

What do you think? How hard will the increased financial controls hit businesses? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

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