Central Bank: China's share of global bitcoin trading volume has dropped from over 90% to 10%

The Financial Stability Bureau of the People's Bank of China issued a document on the 3rd, saying that important achievements have been made in preventing and resolving financial risks since the 19th CPC National Congress, including a comprehensive cleanup and rectification of the financial order. The speculation of virtual currency transactions in China has been effectively curbed, and the proportion of Bitcoin transactions in China has dropped rapidly from more than 90% to 10% of the world.

The Financial Stability Bureau of the central bank said that the centralized rectification of Internet financial chaos has entered the stage of regular supervision. All P2P online lending platforms have withdrawn from operation, and the outstanding loan balance has dropped from the initial 1.2 trillion yuan (RMB) to 490 billion yuan. Severe crackdowns have been launched on illegal financial activities such as disorderly financial operations and "driving without a license", and special operations have been launched to combat illegal fund-raising crimes. In the past five years, a total of 25,000 cases of illegal fund-raising have been filed and investigated.

At the same time, all financial businesses of Internet platform companies will be brought under supervision, business cooperation between licensed institutions and Internet platform companies will be standardized, financial anti-monopoly and anti-unfair competition will be strengthened, and market order will be maintained.

The Financial Stability Bureau of the central bank said that since the fifth national financial work conference, it has firmly managed the overall monetary floodgates, curbed the rapid rise in the macro leverage ratio, and created policy space for the subsequent fight against the epidemic and increased counter-cyclical adjustments. After the epidemic prevention and control situation stabilized, the support policies for the early response to the epidemic were further optimized, and the macro leverage ratio returned to a basically stable track, reaching 272.5% at the end of 2021.

The Financial Stability Bureau of the central bank also pointed out that the current foundation of China's financial system is sound, which is reflected in the overall stability of banking and financial institutions, the comprehensive strengthening of the concept of rule of law and marketization, and the increasingly perfect long-term risk prevention and control mechanism.

Data shows that China's banking industry's total assets account for more than 90% of the total assets of the financial industry. In the fourth quarter of 2021, among the 4,398 banking financial institutions nationwide, 4,082 institutions were rated within the safety boundary, and their assets accounted for 98.96% of the total assets of the banking industry. The number of high-risk banking institutions has dropped from the peak level of 649 in the third quarter of 2019 to 316 for six consecutive quarters, and is expected to be reduced to less than 200 by the end of the 14th Five-Year Plan period.