New Financial Regulator Announced in China: Overhaul of Banking, Insurance
• China announces plans for new national financial regulator, which will replace the current banking and insurance watchdog.
• Responsibilities of the CBIRC will be moved to a new administration, as well as some functions of the central bank and securities regulator.
• The announcement follows a call for reforms from Chinese president Xi Jinping.
China Announces Plans For New National Financial Regulator
The Chinese government has announced its plans for a governmental overhaul, including introducing a new national financial regulator. On Tuesday, March 7th, the government announced that its current banking and insurance watchdog, the China Banking and Insurance Regulatory Commission (CBIRC), will be abolished. The legislature will vote on a plan for institutional reform on Friday, March 10th.
Replacement of Current Banking & Insurance Watchdog
The responsibilities of this commission will be moved to a brand new administration, as will particular functions of the central bank and securities regulator. The new administration is expected to “strengthen institutional supervision, supervision of behaviors and supervision of functions,” according to the plan. Currently, the financial industry in China is under the supervision of three entities: The People’s Bank of China (PBOC), the CBIRC mentioned above, and the China Securities Regulatory Commission.
Call For Reforms From Chinese President Xi Jinping
This announcement follows a call for reforms for party and state institutions in China from country’s president Xi Jinping. These reforms will also include a bureau for sharing and developing data resources which will partly replace duties currently held by Office of Central Cyberspace Affairs Commission.
No Specific Mention Of Reforming Crypto Industry
Although there was no specific mention of reforming crypto industry in this announcement it is important to note that this could have an impact on it nonetheless due to changes within overall financial sector in China.
Conclusion
In conclusion while there was no direct mention of reforming crypto industry with this announcement it is clear that overall changes made to financial sector could have an indirect effect on cryptocurrency regulations in china going forward.
