ChainCatcher news, Li Bin, Deputy Director of the State Administration of Foreign Exchange, recently stated at the Boao Forum for Asia sub-forum on "Finding Currency and Financial Stability in an Unstable World" that the State Administration of Foreign Exchange is highly concerned about the impact of the digital renminbi on the transmission of monetary policy and capital flows. It is also highly concerned about the use of virtual currencies for illegal cross-border fund transfers and is working to enhance its identification and monitoring capabilities in this area.

ChainCatcher news, according to the announcement from the State Administration of Foreign Exchange, the "Measures for the Administration of Bank Foreign Exchange Risk Transaction Reporting (Trial)" have been issued and will take effect immediately. The "Measures" are a supporting document to the "Measures for the Administration of Bank Foreign Exchange Business (Trial)", aimed at strengthening banks' foreign exchange risk management, and early identification, early warning, and early handling of high-risk transactions such as suspected false trade, underground banks, and illegal cross-border financial activities involving virtual currencies.The main contents include: clarifying the responsibility for bank foreign exchange risk transaction reporting, requiring the establishment of a monitoring system and submission of reports; specifying the scope of information reporting, including activities suspected of illegal cross-border capital flows; clarifying the report content, such as basic information and proposed measures; and strengthening internal management measures, including internal control systems and data confidentiality management, etc.

ChainCatcher news, the State Administration of Foreign Exchange has formulated the "Measures for the Administration of Foreign Exchange Business by Banks (Trial)" in accordance with the "Regulations on Foreign Exchange Administration of the People's Republic of China" and relevant laws and regulations, which will take effect on January 1, 2024.Among them, Chapter 5 "Monitoring and Disposal of Foreign Exchange Risk Transactions" Article 28 states that banks shall conduct monitoring and analysis of foreign exchange risk transactions for customer transactions. For information discovered during due diligence, ongoing review, and post-monitoring that is suspected to involve false trade, false investment and financing, underground banks, cross-border gambling, fraudulent export tax refunds, illegal cross-border financial activities involving virtual currencies, and other suspected illegal cross-border capital flow behaviors, timely foreign exchange risk transaction reports shall be formed and submitted to the State Administration of Foreign Exchange.

ChainCatcher news, according to Beike Finance, Lu Lei, deputy director of the State Administration of Foreign Exchange, stated at the "2023 China (Beijing) Digital Finance Forum" that the essence of all financial activities is inter-temporal trading, with currency and interest rates being the core. In the existing model, central bank digital currency (CBDC) is primarily positioned as a cash-like payment certificate (M0), which is a non-interest-bearing high-powered currency.Lu Lei pointed out that assuming the programmability of digital currency, if smart contracts regarding interest rates are loaded onto the central bank digital currency, it will have the opportunity to become broad money (M2). He hopes that the exploration by the Institute of Digital Research can achieve the adjustment of the central bank digital currency interest rate through monetary policy, reaching macro-control objectives. The programmability of central bank digital currency provides innovative space for enriching the central bank's monetary policy tools, but it must be said that this is a common challenge faced by central banks worldwide.

ChainCatcher news, at the 2022 Financial Street Forum Annual Meeting "Governance System and Financial Stability" parallel forum, Huang Hui, Deputy Director of the Management Inspection Department of the State Administration of Foreign Exchange and Chief Judge of the Civil Second Tribunal of the Supreme People's Court, stated that legislation in areas such as non-bank payment institutions and local financial supervision should be improved as soon as possible, strengthening the regulation of payment institutions and clarifying the boundaries of financial regulatory responsibilities between central and local authorities. We should jointly promote the inclusion of virtual currency regulation into legal norms and strengthen the governance of virtual currency transactions. (Securities Times)