The Chinese Government announced that the China Banking and Insurance Regulatory Commission (CBIRC) will be abolished.
The responsibilities of this commission will be transferred to a new administration, such as certain functions of the central bank and securities regulator. The legislature will vote on the institutional reform plan on Friday, March 10. Once the new financial regulator becomes operational, it is planned to strengthen corporate oversight, oversight of behavior and oversight of functions.
Announcement Followed by Xi Jinping’s Call for Reform
The financial sector in China is under the supervision of the People’s Bank of China (PBOC), CBIRC and the China Securities Regulatory Commission.
This announcement comes after the country’s president, Xi Jinping, has called for reform of party and state institutions in China. These reforms will also include a unit for the sharing and development of data sources. This unit will take over the duties of the current Central Cyber Affairs Commission Office.
While the Chinese Government has announced its new plans for the financial sector, reforms to the crypto sector have not been specifically mentioned. But in February, a former adviser to the PBOC urged regulators in Beijing to review the harsh ban on crypto.
China banned almost all crypto transactions in 2021. However, the government is spending millions to develop its own central bank digital currency, the digital yuan.
One of the recent updates to the digital yuan project was the inclusion of new smart contract functionality and new use cases such as purchasing securities and offline payments.
On February 8, China announced the National Blockchain Technology Innovation Center, a new state-sponsored institution to accelerate the country’s industry through blockchain technology.
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