China is stepping up to ‘eliminate’ the crypto trail in the country.
After banning crypto trading, the People’s Bank of China (PBOC) will also launch a virtual asset tracking system: cryptocurrencies and non-fungible tokens (NFTs) in an effort to tackle crimes involving virtual technology.
At the same time, the country is poised to leverage artificial intelligence (AI) and machine learning capabilities.
PBOC director Gou Wenjun revealed virtual assets play an important role in tracking illegal transactions including extortion; Drug smuggling; gambling and money laundering; challenges to supervisory and governance risks; threats to investor rights; as well as financial and economic protection.
Because of that, Gou believes that banks need to strengthen monitoring and analysis for virtual asset transactions, and even ensure the authenticity of the real parties involved in virtual asset transactions.
Domestic and international virtual asset transaction tracking efforts involve cooperation between 60 overseas financial intelligence agencies and China's central bank.
The central bank will also improve the transparency of virtual assets; explore the application of legal policy to determine the essence and impact of virtual assets.
This also involves guidance on the market to ignore the shadows of anarchy and decentralization.
