Bloomberg Law
March 31, 2023, 11:31 AM

PBOC Calls Out US Banks for Crypto Risks, Seeks More Regulation

John Liu
John Liu
Bloomberg News
Fran Wang
Fran Wang
Bloomberg Editorial

A senior Chinese central bank official called for stronger regulation of digital finance, citing recent banking failures linked to US lenders involved in cryptocurrency transactions.

“Risks and fraud associated with cryptocurrency, including the two American banks who ran into troubles after providing many services for crytocurrency from taking deposits to settlement, showed that regulators should respect rules when innovating regulation,” Xuan Changneng, a deputy governor at the People’s Bank of China, said Friday at a panel at the Boao Forum.

While there must be sufficient room for innovation, authorities need to “verify and confirm the new technologies applying to ...

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