Urgent need for a cryptocurrency regulatory framework addressing issuance, trading, and storage, protecting investors, combating money laundering, and fostering international cooperation for sustainable market growth.
It is urgent to build a cryptocurrency regulatory framework. The cryptocurrency market is developing rapidly, but it lacks unified norms. It is necessary to clarify the regulatory entities and responsibilities, build a rule system covering issuance, transactions, storage and other links, coordinate different regulatory agencies, avoid regulatory gaps and overlaps, and ensure the orderly operation of the market. At the same time, investor protection is crucial, cryptocurrencies are volatile and have high risk of fraud. Summits may discuss strengthening information disclosure, establishing investor compensation mechanisms, and enhancing market confidence.
Cryptocurrencies are often used in anti-money laundering and anti-terrorism financing. The summit will explore the use of technical means to monitor transaction flows, identify suspicious transactions, and study international cooperation to combat illegal cross-border capital flows. Because stablecoins are linked to legal currency, they will discuss their reserve requirements, review the qualifications of the issuance entity, and prevent infringement from impacting the financial order. The tax policy for cryptocurrency transactions also needs to be clarified. The nature of exchange income must be defined, reasonable tax rates must be determined, and a taxation and management mechanism must be established to ensure fiscal revenue and market health.
The central bank's digital currency research and development has attracted much attention. The summit will discuss whether its issuance model is direct to the public or indirectly issued through commercial banks, as well as technical selection and integration with the existing monetary system to improve payment efficiency. As the scale of the cryptocurrency market expands and systemic risks increase, the summit will analyze the transmission path of market fluctuations to the financial system, evaluate the size of risks, formulate macro-prudential regulatory policies, and maintain the stability of the financial market.
Blockchain, as a cryptocurrency underlying technology, has great potential. The summit will discuss promoting its innovative applications in finance, supply chain and other fields, and encourage enterprises to increase R&D investment. Cryptocurrencies have no borders and international cooperation is crucial. The summit will promote countries to share regulatory experience, coordinate regulatory policies, establish international unified standards, and jointly respond to global challenges. Cryptocurrencies change the financial ecology. The summit will evaluate its impact on traditional banking business and payment and clearing systems, and guide its coordinated development with traditional finance.
Cryptocurrency mining has high energy consumption. The summit will discuss optimizing mining algorithms, finding clean energy alternatives, realizing green mining, and promoting sustainable development of the industry. Consumers lack awareness of cryptocurrencies, and the summit will discuss and carry out educational activities to popularize knowledge and improve consumers' awareness of risk. Market transparency affects investor decision-making, and the summit will study and require cryptocurrency platforms to disclose more transaction data and promote fair trading.
We must encourage financial innovation and prevent risks. The summit will explore the balance between the two, formulate policies to guide innovation and strengthen supervision. Industry self-discipline helps regulate the market, and the summit will promote the establishment of self-disciplined organizations in the cryptocurrency industry and formulate industry guidelines. There are gaps in the existing laws in the cryptocurrency field. The summit will discuss and improve the legal system, clarify the legal status of cryptocurrencies, and protect the legitimate rights and interests of market participants.
Cryptocurrencies may affect the transmission of monetary policy. The summit will analyze its impact on money supply, interest rates, etc., study and adjust monetary policy to maintain stable economic growth. Market manipulation undermines fairness. The summit will explore monitoring and cracking down on price manipulation, insider trading and other behaviors to maintain market order. Cryptocurrencies may enhance financial inclusion, and the summit will study the use of them to provide financial services to vulnerable groups and promote social equity. Improving infrastructure is the foundation of market development. The summit will focus on the construction of cryptocurrency trading platforms, wallets, etc., improve security and stability, and support industry development.
