China to crack down on digital currencies

China to crack down on digital currencies
© iStock

China’s central bank intends to crack down on digital currencies this year, according to a senior official.


In addition, Fan Yifei, deputy governor of the central bank, said China would pursue the creation of its own digital currency, according to Reuters.

Yifei’s announcement is the latest threat from China to target cryptocurrencies, going back to 2013. 

China took steps to stop trading in the coins and this year also closed a loophole that some traders were exploiting.

Chinese investors were some of the biggest global players in cryptocurrency. The crackdown though has forced many to turn to other countries to continue their digital currency mining.

Digital currency exchanges previously based in China have also left for other countries with a more lax regulatory approach to cryptocurrency.

Lawmakers and regulators in the U.S. have taken a more hands off approach to cryptocurrencies but have said they want to tighten regulation.

Government scrutiny on digital currencies has followed growing public interest as the coins soared in value at the end of 2017.

The most prominent cyrptocurrency, bitcoin, saw its value hit almost $20,000 a coin. It is now trading at just below $8,000 a coin.