With a new policy proposal, the People’s Bank of China want to monitor and control virtual currency trading platforms. The move is part of larger efforts to prevent cryptocurrency from becoming an important means for underground transactions.

China’s central bank is proposing to monitor what the country’s banks and financial institutions are doing with cryptocurrencies, in order to prevent money laundering. The proposal would require mandatory disclosure of all transactions conducted in digital currencies by platforms such as cryptocurrency trading exchanges and blockchain securities.

The “Chinese Central Bank Proposes to Monitor the Metaverse and NFTs” is a news article that discusses how China’s central bank proposes to monitor the metaverse and NFTs.

Chinese Central Bank Proposes to Monitor the Metaverse and NFTs

As part of a plan to decrease crypto-related criminality, the People’s Bank of China (PBoC) has recommended monitoring behavior involving NFTs and the metaverse. Gou Wenjun, the director of the PBoC’s Anti-Money Laundering section (AML), hinted at such intentions during his speech at the 2021 First Lujiazui National Financial Security Summit in late November.

Wenjun expressed worry during the conference about the crypto ecosystem’s emerging tendencies being left uncontrolled. NFTs and the metaverse are examples of such ‘trends,’ and although Wenjun recognizes the advantages they may provide in terms of privacy and wealth growth, he also points out that their isolated nature means they can be exploited for illegal activities like as tax evasion and money laundering.

Wenjun said China has to “clarify the division of supervisory tasks, increase the transparency of virtual assets, and investigate the use of supervisory sandboxes to study and determine the essence and character of virtual assets” while creating a strategy to address the development of virtual assets.

Wenjun also remarked that China should enhance its system for tracking and analyzing digital asset transactions. He suggested that banks and other payment institutions guarantee that the sender and recipient of a crypto transaction may be identified by a verified name.

To accomplish so, Wenjun suggests that artificial intelligence (AI) and machine learning be used more extensively to solve the issue. Wenjun argues that by using such powerful apps, the systems that monitor and identify crypto-related crimes would be enhanced, as will the deployment of ‘digital asset transaction traceability and scene tracking systems.’

 

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