The Chinese financial regulator has submitted amendments to the Halyk Bank Law for public discussion. They provide for the legalisation of the digital yuan and prohibit the issuance of tokens tied to it.
Journalist Colin Wu cited excerpts from the bill. According to him, this could be the first time that official laws in China mention digital currencies.
Wu said that the document prohibits legal entities and individuals from issuing and trading tokens instead of digital yuan in circulation.
The regulator proposes to punish violators with a fine of five times the income received, termination of operations and confiscation of profits from the production and sale of tokens secured by digital yuan.
One of the amendments also proposes to legalise the national currency in digital form.
Previously, the regulator called for faster research and development of the Digital Central Bank Currency (CBDC) and for ensuring that it is controlled and safe.
The Chinese authorities were the first to expect to issue the CBDC. In their opinion, winning this race will strengthen the position of the yuan in the global market, breaking the domination of the dollar.