According to Foresight News, according to the Shanghai Securities News, Xuan Changneng, deputy governor of the People's Bank of China, said at the Boao Forum for Asia 2023 Annual Meeting that effective financial supervision is an important financial infrastructure, and it is necessary to speed up the improvement of the regulatory system that is compatible with the digital economy. Xuan Changneng used cryptocurrency as an example to explain that since the outbreak of the global financial crisis at the beginning of this century, major developed economies have implemented ultra-loose monetary policies for a long time, causing market players to worry about the depreciation of credit currency assets. In this context, cryptocurrencies based on blockchain technology emphasize the attributes of decentralization and rule algorithms, attempting to form a countermeasure to credit currencies, and are sought after by many investors in an environment of abundant liquidity.
Xuan Changneng said that from the actual operation, cryptocurrencies and those created out of thin air have not solved the problems of credit currency. There is a lack of effective supervision in the field of cryptocurrency, and there have been repeated acts of market manipulation, abuse of market transactions, and misappropriation of customer assets. The cryptocurrency trading platform involves the exchange with legal currency and leveraged trading in the process of trading. These links are controlled by the trading platform, issuer, dealer, and market maker. This is actually a very centralized thing.