China to create a tracking system for cryptocurrency transactions

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The information publication Baijiahao, citing its sources in the government, reported that China is working on the creation of a special system for tracking cryptocurrency transactions – the development was considered necessary as part of the nationwide strengthening of control over digital assets. The initiative was proposed by Gou Wenjun, director of the Anti-Money Laundering Monitoring and Analysis Center of the People’s Bank of China. The head of the bank said that the Chinese government authorities need to significantly increase the level of control over the illegal circulation of digital assets, as this poses a serious threat to the yuan.

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Gou Wenjun also said that when creating a system that will track cryptocurrency transactions in the country, it is necessary to use artificial intelligence and other modern developments as the foundation for the effective implementation of the task. As a result, when the system works, the Chinese authorities will be able to quickly identify any sender or recipient of digital assets in the country. So far, however, it is not entirely clear how this will be implemented, because tracking decentralized cryptocurrencies is quite difficult, especially when it comes to a country with such an impressive population and the number of potential users.

However, this is far from the first blow to cryptocurrency in China – earlier, Liu He, Vice President of the State Council of the People’s Republic of China, called on local authorities to tighten regulation of digital assets, after which the mining of cryptocurrency in China was officially banned. Of course, it did not work to completely eradicate the production of digital currency in one fell swoop, but now, apparently, the authorities are ready to take the next step, starting to control transactions as well.

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