The central bank plans to amend the “People’s Bank of China Law”: prohibit the production and sale of digital tokens

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On October 23, the Central Bank formally issued a notice on the “People’s Bank of China Law of the People’s Republic of China (Revised Draft for Solicitation of Comments)”, and at the same time issued a draft document (“People’s Bank of China Law of the People’s Republic of China (Revised Draft for Solicitation of Comments)” Draft)”, hereinafter referred to as the “Draft for Solicitation of Comments”), openly soliciting opinions from the public, and the deadline for feedback is November 23, 2020.

In response to the reasons for amending the “People’s Bank of China Law”, the central bank pointed out in the explanatory document of the “Draft for Comments”: First, the need to implement the central financial reform and deployment and build a modern central bank system; second, promote structural reforms on the financial supply side. The need to prevent and resolve systemic financial risks; third, it is in line with the trend of international financial regulatory reform.

From the perspective of the main content, the “Draft for Solicitation of Comments” consists of 9 chapters and 73 articles, including general rules, organizational structure, RMB, business, supervision and management responsibilities, supervision and management measures, financial accounting, legal responsibilities, and supplementary provisions. (Compared with the current “People’s Bank of China Law” add 20 regulations)

In the “Legal Liability” chapter, the “Consultation Draft” stated that “for the production and sale of tokens, coupons and digital tokens to replace the circulation of RMB in the market, the People’s Bank of China shall order the suspension of illegal activities and destroy the illegal production and sale Token bills and digital tokens shall be confiscated of illegal income, and a fine of less than five times the illegal amount shall be imposed; if the illegal amount cannot be determined, a fine of 100,000 yuan up to 500,000 yuan shall be imposed. If the circumstances are serious, follow 61 Penalties stipulated in the second paragraph of Article.”

In this regard, Liu Changyong, the founder of Zhimi University, said to Mars Finance, “This is in the era of digital currency. The constitution stipulates that the renminbi is the only legal currency in China. It is consistent with the spirit of the five ministries and commissions in 2014. Any digital token is It cannot be circulated in the market as a currency in China. This “draft for comments” will not affect the tokens circulating in the commercial system. “

Some people in the industry believe that the above regulations may clear the way for the issuance of digital renminbi, prevent problems before they happen, and protect the public interest from loss. Liu Changyong agreed with this and said, “It may also be to prevent some departments within the system from issuing digital tokens. For example, the’brand tokens’ issued by the Bureau of Radio, Film and Television.”

For those stablecoin projects that wish to issue offshore renminbi, will the above regulations attack them? “It depends on where the main body of the company is. The domestic company must be banned, but the overseas management industry cannot control it,” Liu Changyong said.

The full text of the “Draft for Soliciting Comments” is attached:

Chapter One General Provisions

Article 1 (Legislative Purpose) To establish the status of the People’s Bank of China, clarify its responsibilities, ensure the correct formulation and implementation of national monetary policies and macro-prudential policies, establish and improve the central bank’s macro-control system, maintain financial stability, and promote financial service entities Economy, enact this law.

Article 2 (Responsibility Positioning) The People’s Bank of China is the central bank of the People’s Republic of China.

Under the leadership of the State Council, the People’s Bank of China formulates and implements monetary policies and macro-prudential policies to prevent and resolve financial risks and maintain financial stability.

Article 3 (Monetary Policy Goal) The goal of monetary policy is to maintain the stability of the currency value and to promote economic growth.

Article 4 (Macroprudential Policy Objectives) The macroprudential policy objective is to prevent the pro-cyclical accumulation of systemic financial risks, as well as cross-institution, cross-industry, and cross-market contagion, in order to maintain the health and stability of the financial system.

Article 5 (Main Duties) The People’s Bank of China shall perform the following duties:

(1) Draft major laws and regulations in the financial industry, formulate basic systems for prudential supervision, and issue orders and regulations related to the performance of duties;

(2) Formulate and implement monetary and credit policies, and be responsible for macro-prudential management;

(3) Responsible for the formulation of basic rules, monitoring analysis and consolidated supervision of financial holding companies and other financial groups and systemically important financial institutions, and leading the formulation of basic rules and monitoring and evaluation of intersecting financial businesses;

(4) Take the lead in the prevention and disposal of systemic financial risks, organize the implementation of the deposit insurance system, and manage deposit insurance funds according to authorization;

(5) Leading the national financial security work coordination mechanism and organizing the implementation of national financial security review work;

(6) Supervise and administer the inter-bank bond market, money market, foreign exchange market, bill market, gold market and relevant over-the-counter derivative products in the aforementioned markets;

(7) Take the lead in the planning of important financial infrastructure construction and coordinate the implementation of supervision;

(8) Formulate and implement RMB exchange rate policies, and be responsible for RMB cross-border management;

(9) Manage the State Administration of Foreign Exchange, implement foreign exchange management and cross-border capital flow management, maintain the balance of international payments, and hold, manage and operate the state’s foreign exchange reserves and gold reserves;

(10) Responsible for comprehensive statistics, investigation, analysis and forecasting of the financial industry;

(11) Responsible for financial standardization and financial technology work, guide financial industry network security and informatization work, guide and supervise the security protection of key information infrastructure in the financial industry, and formulate basic rules for financial data security supervision;

(12) Issue RMB and manage the circulation of RMB;

(13) Coordinate the construction of the national payment system and implement supervision and management;

(14) Manager’s treasury;

(15) Take the lead in the national anti-money laundering and anti-terrorist financing work;

(16) Manage the credit investigation industry and credit rating industry, and promote the establishment of a social credit system;

(17) Formulate basic financial consumer protection systems and take the lead in establishing a financial consumer protection coordination mechanism;

(18) As the country’s central bank, engage in relevant international financial activities, carry out international financial cooperation, and promote the opening up of the financial industry in conjunction with other financial supervision and management departments;

(19) Other duties specified by the Party Central Committee and the State Council.

The People’s Bank of China may conduct financial business activities in accordance with the relevant provisions of Chapter 4 of this Law.

Article 6 (Monetary Policy) Decisions made by the People’s Bank of China on interest rates, exchange rates and other important matters stipulated by the State Council shall be implemented after being approved by the State Council.

After the People’s Bank of China makes decisions on other monetary policy matters other than those specified in the preceding paragraph, it shall be implemented immediately and reported to the State Council for the record.

Article 7 (Work Report System) The People’s Bank of China shall submit a work report on monetary policy and financial industry operation to the Standing Committee of the National People’s Congress.

Article 8 (Independence) The People’s Bank of China, under the leadership of the State Council, independently implements monetary policy, performs its duties, and conducts business in accordance with the law, free from interference by local governments, government departments at all levels, social organizations, and individuals.

Article 9 (Capital) All capital of the People’s Bank of China shall be funded by the state and belong to the state.

Article 10 (Coordination Mechanism) The Financial Stability and Development Committee of the State Council shall coordinate financial reform, development and stabilization as a whole. The Office of the Financial Stability and Development Committee of the State Council is located in the People’s Bank of China, which coordinates the establishment of coordination mechanisms for central and local financial supervision, risk management, financial consumer rights protection, and information sharing.

Chapter II Organization

Article 11 (Appointment and Removal of the President) The People’s Bank of China shall have one president and several deputy presidents.

The candidate for the governor of the People’s Bank of China is nominated by the Premier of the State Council and is decided by the National People’s Congress. During the period when the National People’s Congress is not in session, it is decided by the Standing Committee of the National People’s Congress and appointed and removed by the President of the People’s Republic of China. The Deputy Governor of the People’s Bank of China is appointed and removed by the Premier of the State Council.

Article 12 (President Responsibility System) The People’s Bank of China implements the governor responsibility system. The governor leads the work of the People’s Bank of China, and the deputy governor assists the governor in his work.

Article 13 (Monetary Policy Committee) The People’s Bank of China shall establish a Monetary Policy Committee. The responsibilities, composition and working procedures of the Monetary Policy Committee shall be prescribed by the State Council and reported to the Standing Committee of the National People’s Congress for the record.

The Monetary Policy Committee of the People’s Bank of China should play an important role in the country’s macro-control, monetary policy formulation and adjustment.

Article 14 (Branches) The People’s Bank of China shall establish branches as the dispatched offices of the People’s Bank of China in accordance with the need to perform its duties. The People’s Bank of China exercises unified leadership and management over branches.

In accordance with the authorization of the People’s Bank of China, branches of the People’s Bank of China perform relevant duties, undertake related businesses, and maintain financial stability in their jurisdictions.

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The branches of the People’s Bank of China implement a bank staff system.

Article 15 (Requirements for Integrity) The governor, deputy governor and other staff of the People’s Bank of China shall perform their duties strictly, and shall not abuse their power, practice favoritism, or engage in part-time jobs in any economic organization or social organization in violation of regulations.

Article 16 (Requirement for Confidentiality) The governor, deputy governor and other staff of the People’s Bank of China shall keep state secrets in accordance with the law and have the responsibility to keep secrets for financial institutions and parties involved in the performance of their duties.

Article 17 (Internal Control Construction) The People’s Bank of China shall establish and improve the audit and supervision system of the system, and strengthen internal management.

Chapter 3 RMB

Article 18 (The legal indemnity of RMB) The legal currency of the People’s Republic of China is RMB. No unit or individual may refuse to pay all public and private debts within the territory of the People’s Republic of China in RMB.

Article 19 (RMB Unit) The unit of Renminbi is Yuan, and the unit of Renminbi currency is Jiao and Fen.

RMB includes physical form and digital form.

Article 20 (Renminbi Issuance) Renminbi shall be uniformly produced and issued by the People’s Bank of China.

When issuing a new version of Renminbi, the People’s Bank of China shall announce the time of issuance, denomination, design, style, specifications, etc.

Article 21 (Prohibition Provisions) Forgery or alteration of Renminbi is prohibited. The sale or purchase of counterfeit or altered RMB is prohibited. It is prohibited to transport, hold, and use counterfeit or altered RMB. It is forbidden to intentionally damage the RMB. It is prohibited to make, imitate, or buy and sell RMB patterns. It is prohibited to illegally use RMB patterns in promotional materials, publications or other commodities.

Article 22 (Tokens) No unit or individual may make or sell tokens, coupons and digital tokens to replace RMB in circulation in the market.

Article 23 (Renminbi not suitable for circulation) Incomplete or defaced RMB that is not suitable for circulation shall be exchanged, recovered and destroyed in accordance with the regulations of the People’s Bank of China.

The suspension of circulation of a specific version of RMB shall be reported to the State Council for approval and the People’s Bank of China shall make an announcement.

Article 24 (Issuance Library and Issuance Fund Management) The People’s Bank of China shall establish a RMB issuance library, and may set up an agent RMB issuance library or take custody of the issuance fund as needed. The allocation of RMB issuance funds by the lower-level issuance library shall be handled in accordance with the allocation order of the higher-level issuance library. No unit or individual may use the issuance fund in violation of regulations.

Chapter 4 Business

Article 25 (Monetary Policy Tools) In order to implement monetary policy, the People’s Bank of China may use the following monetary policy tools:

(1) Require financial institutions to deposit reserves in accordance with regulations;

(2) Determine the central bank’s policy interest rate;

(3) Re-discount for banking financial institutions;

(4) Providing loans to commercial banks, rural credit cooperatives, rural cooperative banks, policy banks, and development banks;

(5) Open market operations;

(6) Other monetary policy tools determined by the State Council.

In order to implement monetary policy, the People’s Bank of China may stipulate specific conditions and procedures when using the monetary policy tools listed in the preceding paragraph.

Article 26 (Platform for Duty Performance) In order to manage foreign exchange and gold reserves, the People’s Bank of China may set up a special operation and management organization to obtain operating income, and implement management of the capital, assets, business and major issues of the operation and management organization. And supervision.

In order to perform its duties, the People’s Bank of China may establish other necessary performance platforms and manage them.

Article 27 (Managing the Treasury) The People’s Bank of China shall manage the treasury in accordance with the provisions of laws and administrative regulations.

The People’s Bank of China may, on behalf of the financial department of the State Council, organize the issuance and redemption of government bonds and other government bonds to various financial institutions.

Article 28 (Account Opening) Upon application, the People’s Bank of China may open accounts for financial institutions, non-bank payment institutions, clearing institutions, etc., but shall not overdraft the accounts.

Article 29 (Payment Business) The People’s Bank of China shall organize or assist in the construction of financial institutions, non-financial institutions and their mutual fund clearing and settlement systems, and coordinate financial institutions, non-financial institutions and their mutual clearing It provides fund clearing and settlement services. The specific measures are formulated by the People’s Bank of China.

The People’s Bank of China, in conjunction with relevant departments, formulates payment and settlement business rules.

Article 30 (International Financial Services) The People’s Bank of China may provide financial services to foreign central banks, international financial organizations and other institutions as needed.

Article 31 (Conditions and Use Regulations of Loans) Where the People’s Bank of China provides loans, it may determine the amount, term, interest rate, and method of the loan. The People’s Bank of China may require the borrower to provide a guarantee and determine the type and method of the guarantee.

Loan funds issued by the People’s Bank of China shall be used in accordance with regulations, no unit or individual may misappropriate, and unused loan funds shall not be frozen or deducted.

Article 32 (Loan Prohibition) The People’s Bank of China may not overdraft government finances, and may not directly subscribe or underwrite government bonds and other government bonds.

The People’s Bank of China may not provide loans to local governments or government departments at all levels, nor may it provide loans to non-bank financial institutions and other units and individuals, unless the State Council decides that the People’s Bank of China may provide loans to specific non-bank financial institutions.

The People’s Bank of China shall not provide guarantees to any unit or individual.

Chapter V Supervision and Management Responsibilities

Article 33 (Monetary and Credit Supervision) The People’s Bank of China shall supervise and manage the implementation of monetary and credit policies by financial institutions.

Article 34 (Macro-prudential management) The People’s Bank of China takes the lead in establishing a macro-prudential policy framework, formulating and implementing macro-prudential policies, and may use the following macro-prudential policy tools:

(1) The capital management requirements of financial institutions such as countercyclical capital buffers, systemically important additional capital, dynamic provisioning, and capital requirements for specific sectors;

(2) Financial institution leverage ratio, loan-to-value ratio, loan-to-income ratio, risk asset weight, inter-bank asset (liability) ratio requirements, and large risk exposure restrictions and other asset management requirements;

(3) Liquidity management requirements such as the liquidity coverage ratio and net stable financing ratio of financial institutions;

(4) Counter-cyclical adjustment tools such as risk reserves;

(5) Financial market or financial infrastructure management tools such as transaction fee rate, margin ratio, and leverage ratio;

(6) Macro-prudential stress testing;

(7) Other macro-prudential management tools determined by the State Council.

Article 35 (Supervision of Systemically Important Financial Institutions) The People’s Bank of China takes the lead in evaluating and identifying systemically important financial institutions, organizing the formulation and implementation of recovery and disposal plans for systemically important financial institutions, and implementing monitoring, analysis, and consolidation of systemically important financial institutions. Table supervision.

Article 36 (Licensing and Supervision of Financial Holding Companies) The People’s Bank of China is responsible for establishing and improving the financial holding company supervision system, supervising financial holding companies in accordance with the law, and approving the establishment, modification, merger, division, dissolution, bankruptcy and bankruptcy of financial holding companies. Business Scope.

Without the approval of the People’s Bank of China, no unit or individual may use the name “financial holding”, “financial group” or similar names.

Article 37 (Financial Stability) The People’s Bank of China monitors and evaluates the overall soundness of the financial system, takes the lead in proposing policy recommendations and handling plans for preventing and resolving systemic financial risks, organizes their implementation, and implements national financial security reviews.

Article 38 (Financial Market Management) The People’s Bank of China takes the lead in formulating financial market development plans, coordinating financial market supervision and management and related policies, monitoring financial market operations, implementing macro-prudential management of the financial market, and promoting its coordinated development.

Article 39 (Financial Infrastructure Supervision) The People’s Bank of China is responsible for formulating important financial infrastructure construction plans and coordinating their implementation, promoting the interconnection of financial infrastructure and drafting relevant business rules, coordinating the establishment of a transaction reporting system covering the entire market, and building And operate the total transaction report database.

The People’s Bank of China takes the lead in formulating financial infrastructure supervision and management rules, organizing inspections and evaluations of financial infrastructure, putting forward identification opinions on systemically important financial infrastructure, and implementing macro-prudential management.

The People’s Bank of China approves the establishment and supervision of the inter-bank market infrastructure, basic credit information system, important payment systems and their operating institutions, and, in conjunction with the relevant financial supervision and management department of the State Council, approves the establishment and implementation of other financial infrastructures other than the securities and futures industries Function supervision.

Article 40 (Financial Statistics) The People’s Bank of China is responsible for formulating comprehensive statistical standards and systems for the financial industry, building a national financial basic database, collecting and managing statistical data and information on the national financial industry, compiling national financial statistics and reports, and in accordance with relevant state regulations. The regulations are published.

The People’s Bank of China is responsible for the investigation, analysis and forecasting of central bank policies.

Article 41 (Safety Protection and Supervision of Critical Information Infrastructure in the Financial Industry) The People’s Bank of China is responsible for formulating a security plan for critical information infrastructure in the financial industry, organizing the identification of critical information infrastructure in the financial industry, promoting the formulation of industry standards and regulations, and establishing network security monitoring and early warning Notification system and emergency work system, organize risk assessment and emergency drills.

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Article 42 (Payment Service Market Supervision) The People’s Bank of China supervises non-bank payment institutions, clearing institutions and other payment service organizations in accordance with the law, and is responsible for approving the establishment, modification, termination and business of non-bank payment institutions and bank card clearing institutions The scope and specific measures shall be separately formulated by the People’s Bank of China.

Article 43 (Financial Technology Management) The People’s Bank of China takes the lead in formulating and promoting the implementation of financial technology development plans, drafting basic rules for financial technology supervision, and guiding and coordinating the application of financial technology.

Article 44 (Management of Credit Information Market and Credit Rating Market) The People’s Bank of China is responsible for formulating credit information market and credit rating market development plans, laws and regulations, and industry standards, as well as the Implementation of supervision and management of credit rating business activities.

Article 45 (Protection of Financial Consumer Rights and Interests) The People’s Bank of China shall coordinate the development of financial consumer education, take the lead in establishing a supervisory law enforcement cooperation and non-litigation third-party resolution mechanism, coordinate and promote related inclusive finance work, and carry out the functions of the People’s Bank of China in accordance with the law Protection of financial consumer rights.

Article 46 (Management of Self-Regulatory Organizations) The People’s Bank of China shall guide and supervise industry self-regulatory organizations related to the performance of duties in accordance with the law. Industry self-regulatory organizations may formulate self-regulatory rules and implement self-regulatory management in accordance with the law.

Chapter VI Supervision and Management Measures

Article 47 (Power of Inspection and Supervision) The People’s Bank of China and its branches have the right to enforce this Law and the administrative regulations formulated by the People’s Bank of China in accordance with this Law on financial institutions and other entities and individuals in order to perform their duties as prescribed by this Law. Conduct inspection and supervision.

Article 48 (On-site inspection measures) The People’s Bank of China and its branches may take the following measures to conduct on-site inspections in order to perform the duties prescribed by this law:

(1) Enter the regulated institution for inspection;

(2) Ask the staff of the supervised institution and ask them to explain the relevant inspection items;

(3) Consult and copy the documents and materials related to the inspection items of the supervised institution, and seal the documents and materials that may be transferred, concealed or damaged;

(4) To inspect and seal the computer network and information system of the supervised institution.

The on-site inspection shall be approved by the person in charge of the People’s Bank of China or its branch at or above the prefecture and city level. During the on-site inspection, there shall be no less than two inspectors, and they shall present their legal certificates and inspection notices; if there are fewer than two inspectors or fail to present their legal certificates and inspection notices, the supervised agency has the right to refuse the inspection.

Article 49 (Off-site Supervision Measures) The People’s Bank of China and its branches may carry out stress testing, rating, evaluation, risk monitoring, etc. on regulated institutions, and conduct supervision and management matters and supervised institutions’ implementation of the People’s Bank of China’s policies and regulations. The prescribed situation is evaluated and notified.

The People’s Bank of China and its branches may conduct supervisory and management conversations with the directors and senior managers of the supervised institution according to the need to perform their duties, and require the directors and senior managers of the supervised institution to give explanations on major business activities and risk management issues .

Article 50 (Supervisory Measures) If the People’s Bank of China and its branches discover violations of this law through inspections and supervision of the regulated institution, they shall order corrections within a time limit; if they fail to make corrections within the time limit, or their actions may cause major financial risks, the Upon approval by the People’s Bank of China or its branches at or above the provincial level, the following measures can be taken based on circumstances:

(1) To grant punitive interest rates to rediscount and loans provided by the People’s Bank of China;

(2) Order to suspend part of the business or prohibit new business;

(3) Revocation of relevant business licenses;

(4) Restrict or prohibit access to the payment, clearing and settlement system of the People’s Bank of China;

(5) Announcing the accelerated maturity of loans provided by the People’s Bank of China and requiring repayment.

After being rectified by the regulatory agency, a report shall be submitted to the People’s Bank of China. After the acceptance by the People’s Bank of China or its provincial branch and the relevant regulations are met, the relevant measures prescribed in the preceding paragraph shall be lifted within three days from the completion of the acceptance.

Article 51 (Information Submission) The People’s Bank of China and its branches have the right to require the supervised institution to submit balance sheets, income statements, financial accounting reports, and other materials, data, and information in accordance with the needs of performing their duties. Supervised institutions shall, in accordance with the requirements of the People’s Bank of China, provide various materials, data, and information in a true, accurate, complete and timely manner, and shall not delay or refuse to report or provide untrue or incomplete materials, data, and information.

The People’s Bank of China has the responsibility and obligation to keep confidential the materials, data and information mentioned in the preceding paragraph.

Article 52 (Supervisory Information Sharing) The People’s Bank of China shall establish a supervisory information sharing mechanism with member units of the Financial Stability and Development Commission of the State Council.

The People’s Bank of China may cooperate with overseas supervisory authorities to share supervisory information and implement cross-border supervisory in accordance with the needs of performing its duties and in compliance with national security and confidentiality laws and administrative regulations.

Article 53 (Measures for the establishment of financial holding companies without permission) According to the provisions of the People’s Bank of China, a financial holding company should be established, but if the financial holding company’s administrative license has not been obtained, the People’s Bank of China in conjunction with the financial supervision and management department of the State Council shall order If correction is not made within the time limit, the People’s Bank of China may, in conjunction with the financial supervision and management department of the State Council, order it to take measures such as transferring the equity of the financial institution it controls or transferring actual control.

Article 54 (Regulatory Measures for Financial Holding Companies and Institutions Using Central Bank Funds) Where a financial holding company violates this Law and the relevant regulations of the People’s Bank of China, or affects financial stability or harms the public’s interests, the People’s Bank of China may distinguish between situations. Take the following supervisory measures:

(1) Restrict business activities, order the suspension of some businesses, and stop approving new businesses;

(2) Restrict the distribution of dividends, and restrict the remuneration and other income of directors, supervisors, and senior managers;

(3) Restrict the transfer of assets;

(4) Replenishing capital within a time limit;

(5) Ordering shareholders to transfer equity or restricting shareholders’ rights;

(6) Order to adjust the responsible directors, supervisors, and senior managers or restrict their rights;

(7) Order to transfer the equity of the financial institution it controls;

(8) Other measures approved by the State Council.

The People’s Bank of China is responsible for inspecting and supervising the use of central bank funding agencies to resolve financial risks, and may adopt the supervisory measures specified in the preceding paragraph according to circumstances.

Article 55 (Disposal of Systemic Financial Risks) The People’s Bank of China, in conjunction with relevant departments, may take the following measures to deal with systemic financial risks:

(1) Supervise the agency in question to implement self-rescue and take the supervisory measures as prescribed in the first paragraph of Article 54 of this law to the agency in question;

(2) Implement debt write-downs to creditors according to law;

(3) Coordinating local governments to implement territorial responsibilities for risk disposal;

(4) Provide liquidity support;

(5) Issuing financial stability loans;

(6) Establish a special purpose entity to take over, manage and dispose of the assets and liabilities of the institution in question;

(7) Establish special purpose entities, acquire, inject capital, and hold shares of problematic institutions periodically;

(8) Other disposal measures approved by the State Council.

Article 56 (Measures for Investigation of Illegal Acts) The People’s Bank of China and its branches may take the following measures to investigate and collect evidence for suspected violations of this Law and relevant regulations of the People’s Bank of China:

(1) Entering the place where the suspected illegal act occurred for investigation;

(2) Inquiring the parties and units and individuals related to the incident under investigation, and requesting them to explain matters related to the incident under investigation;

(3) Consult and copy documents and materials related to the incident under investigation, and seal the documents and materials that may be transferred, concealed or destroyed;

(4) Inspect and seal the computer network and information system related to the incident under investigation;

(5) Inquiry about the accounts opened in financial institutions by units and individuals related to the incident under investigation;

(6) Where there is evidence to prove that the property involved in the case such as illegal funds has been or may be transferred or concealed, it shall apply to the people’s court to freeze, seal or seize;

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(7) Other measures stipulated by laws and regulations.

The People’s Bank of China and its branches adopt the measures specified in the preceding paragraph. There shall be no less than two investigators and shall present their legal documents and notice of investigation; if there are fewer than two investigators or fail to present their legal documents and notice of investigation, the relevant unit Or the individual has the right to refuse. For measures taken in accordance with the law, relevant units and individuals shall cooperate, truthfully explain the relevant circumstances and provide relevant documents and materials, and shall not refuse, obstruct or conceal.

The People’s Bank of China and its branches shall obtain the approval of the person in charge of the People’s Bank of China or its branches at or above the prefecture and city level if the measures taken in items 5 and 6 of the first paragraph of this article are adopted.

Chapter 7 Financial Accounting

Article 57 (Financial Accounting System) The People’s Bank of China shall formulate a central bank accounting system and an independent financial budget management system, which shall be implemented after being approved by the State Council.

The financial revenues and expenditures, accounting affairs and related economic activities of the People’s Bank of China are subject to the audit and supervision of the State Council’s auditing agency in accordance with the law.

Article 58 (Financial Buffer) The People’s Bank of China shall maintain the financial strength commensurate with the performance of duties and risk-taking, and establish and improve the reserve fund system and capital supplement mechanism.

The People’s Bank of China shall set aside special reserves according to the nature of the assets and risk status for the write-off of asset losses.

Article 59 (Profit Distribution) The PBC’s income for each fiscal year is deducted from the expenditure for that year, and the net profit after a certain percentage of the total reserve is drawn into the central budget. After approval by the State Council, the total reserve fund can be transferred to increase state capital.

The loss of the People’s Bank of China is made up by state capital and central government funding.

Article 60 (Annual Financial Accounting Report) The People’s Bank of China shall, after the end of each fiscal year, prepare a balance sheet, profit and loss statement, and related financial accounting statements, and prepare an annual report, which shall be published in accordance with relevant state regulations.

The fiscal year of the People’s Bank of China is from January 1 to December 31 of the Gregorian calendar.

Chapter 8 Legal Liability

Article 61 (Liability for Violation of Management Regulations) Financial institutions, other units and individuals who violate this Law and the relevant provisions of the People’s Bank of China, and relevant laws and administrative regulations have penalties shall be punished in accordance with the relevant laws and administrative regulations; If no penalties are provided, the People’s Bank of China shall give warnings based on different circumstances, confiscate the illegal income, and if the illegal income is more than 500,000 yuan, a fine of one to five times the illegal income shall be imposed; there is no illegal income or the illegal income is less than 50%. In case of RMB 10,000, a fine of not less than 500,000 yuan but not more than 2 million yuan shall be imposed; the directors, senior managers and other directly responsible persons shall be warned, and shall be fined not less than one time but not more than five times the illegal income, and there is no illegal income Or where the illegal income is less than 100,000 yuan, a fine of 100,000 yuan up to 500,000 yuan shall be imposed; if a crime is constituted, criminal responsibility shall be investigated according to law.

Financial institutions, other units, and individuals have the circumstances specified in the preceding paragraph, and if the circumstances are serious, the People’s Bank of China may increase the penalty, and may impose a fine of less than ten times the illegal income or less than 20 million yuan, whichever is higher; The directors, senior managers and other persons directly responsible may be fined up to ten times the illegal income or less than RMB 5 million, whichever is higher. Institutions that have obtained administrative licenses from the People’s Bank of China may be ordered to suspend business for rectification, temporarily withhold or revoke their licenses, and prohibit directors, supervisors, and senior managers from engaging in work in their respective industries for a certain period of time until their life.

Institutions that carry out business activities without the administrative license of the People’s Bank of China shall be banned by the People’s Bank of China and be punished in accordance with the provisions of the first and second paragraphs.

Article 62 (Responsibilities for Obstructing the Performance of the People’s Bank of China) Where financial institutions and other units and individuals prevent the staff of the People’s Bank of China from performing their duties according to law, the People’s Bank of China may order them to make corrections. Those who refuse to make corrections may be fined 200,000 yuan up to 500,000 yuan; if a violation of public security management is constituted, the public security organ shall impose public security management penalties according to law; if a crime is constituted, criminal responsibility shall be investigated according to law.

Article 63 (Responsibility for counterfeiting or altering Renminbi) Forging or altering Renminbi, selling or buying forged or altered Renminbi, or knowingly transporting, holding, or using the forged or altered Renminbi constitutes a violation of public security administration In case of acts, the public security organ shall impose public security management penalties in accordance with law; if a crime is constituted, criminal responsibility shall be investigated in accordance with law.

Article 64 (Responsibility for Illegal Use of RMB Patterns) If you make, imitate, buy or sell RMB patterns, or illegally use RMB patterns on publicity materials, publications or other commodities, the People’s Bank of China shall order corrections and destroy the illegally used RMB For drawings, the illegal gains shall be confiscated and a fine of less than 200,000 yuan shall be imposed.

Article 65 (Responsibilities for Making and Selling Tokens) For the production and sale of tokens, coupons and digital tokens to replace Renminbi in the market, the People’s Bank of China shall order the cessation of illegal activities and destroy the illegally produced and sold tokens For tickets and digital tokens, the illegal income shall be confiscated and a fine of less than five times the illegal amount shall be imposed; if the illegal amount cannot be determined, a fine of 100,000 yuan up to 500,000 yuan shall be imposed. If the circumstance is serious, it shall be punished in accordance with the second paragraph of Article 61.

Article 66 (Rectification Commitment) Before the People’s Bank of China and its branches make an administrative penalty decision, if the parties apply in writing to submit a rectification commitment that meets the requirements to the People’s Bank of China and its branches, they shall be approved by the People’s Bank of China and its branches. After the review is passed, the administrative penalty can be suspended. If the party completes the rectification within the promised time limit, the People’s Bank of China and its branches may reduce or lighten the punishment in accordance with the law; if the party fails to complete the rectification within the time limit, the punishment shall be heavier. The specific measures are formulated by the People’s Bank of China.

When the People’s Bank of China and its branches implement the provisions of the preceding paragraph, they shall disclose relevant information in accordance with the law.

Article 67 (Administrative Litigation) If the parties are dissatisfied with the administrative penalty, they may file an administrative lawsuit in accordance with the provisions of the Administrative Litigation Law of the People’s Republic of China.

Article 68 (Sanctions) Where the People’s Bank of China commits one of the following acts, the directly responsible person in charge and other directly responsible persons shall be punished according to law; if a crime is constituted, criminal responsibility shall be investigated according to law:

(1) Providing loans in violation of the second paragraph of Article 32 of this Law;

(2) Providing guarantees to units and individuals;

(3) Unauthorized use of the issuance fund.

If one of the acts listed in the preceding paragraph causes losses, the directly responsible person in charge and other directly responsible persons shall bear part or all of the liability for compensation.

Article 69 (Forced Guarantee Responsibility) Where local governments, government departments at all levels, social organizations and individuals force the People’s Bank of China and its staff to provide loans or guarantees in violation of Article 32 of this Law, they shall be liable The directly responsible person in charge and other directly responsible persons shall be punished according to law; if a crime is constituted, criminal responsibility shall be investigated according to law; if a loss is caused, part or all of the compensation shall be borne.

Article 70 (Responsibility for Leaking Secrets) If the staff of the People’s Bank of China reveals state secrets or known commercial secrets or personal privacy, and constitutes a crime, they shall be investigated for criminal responsibility according to law; if a crime is not constituted, sanctions shall be given according to law.

Article 71 (Responsibility for Clean Government) The staff of the People’s Bank of China shall be investigated for criminal responsibility in accordance with law if they commit corruption, accept bribes, practice favoritism, abuse of power, neglect their duties and other violations of law and discipline, which constitute a crime;

Chapter 9 Supplementary Provisions

第七十二条(定义)本法所称银行业金融机构,是指商业银行、农村信用合作社、农村合作银行等吸收公众存款的金融机构以及政策性、开发性银行。

本法所称被监管机构,是指依据本法、相关法律和行政法规,应当接受中国人民银行监督管理的机构。

金融资产管理公司、信托投资公司、财务公司、金融租赁公司以及经国务院银行业监督管理机构批准设立的其他金融机构,适用本法对银行业金融机构的规定。

第七十三条(施行时间)本法自年月日起施行。