China announces plans for new national financial regulator

The new administration will replace the current banking and insurance watchdog, which coincides with a more extensive government overhaul.

The Chinese government has plans for a governmental overhaul, according to a new announcement. This includes introducing a new national financial regulator.

On Tuesday, March 7, the government announced that its current banking and insurance watchdog, the China Banking and Insurance Regulatory Commission (CBIRC), will be abolished.

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 legislature will vote on a plan for institutional reform on Friday, March 10.

When in place, the new financial regulator will “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 the People’s Bank of China (PBOC), the CBIRC mentioned above, and the China Securities Regulatory Commission.

This announcement follows a call for reforms for party and state institutions in China from the country’s president Xi Jinping. These reforms will also include a bureau for sharing and developing data resources, which will partly replace the duties of the current Office of the Central Cyberspace Affairs Commission.

Related: Over 1,400 Chinese firms operating in blockchain industry, national white paper shows

Although the Chinese government announced new plans for its financial sector, there was no specific mention of reforms for the crypto industry. However, in February, an ex-adviser to the PBOC called upon regulators in Beijing to reconsider its harsh ban on crypto.

In 2021, China banned nearly all crypto transactions. Nonetheless, the government has been spending millions developing its own central bank digital currency (CBDC), the digital yuan.

One of the most recent updates on the digital yuan project was the incorporation of new smart contract functionality and new use cases, including buying securities and offline payments.

On Feb. 8, China announced a new state-supported institution, the National Blockchain Technology Innovation Center, to speed up the country’s industry via blockchain technology.