The "Digital Currency and Cryptocurrency" symposium, held in Beijing on July 14, brought together leading legal and financial experts from academia, international institutions, and regulatory bodies to discuss the evolving landscape of digital assets. Co-hosted by the Institute of Finance and Law and the Center for International Rule of Law at Northwest University of Political Science and Law, along with the Law School of the University of International Business and Economics (UIBE), the event featured high-level dialogue on central bank digital currencies (CBDCs), cryptocurrency regulation, financial integrity, and cross-border legal challenges.
Chaired by Professor Jun Fu from UIBE and Dr. Sheng Chen, Deputy Director of the Institute of Finance and Law, the symposium provided a platform for in-depth exchange between International Monetary Fund (IMF) representatives and Chinese scholars. The discussions reflected growing global interest in how digital innovation is reshaping monetary systems and financial law.
Keynote Insights from IMF Legal Experts
The symposium opened with welcoming remarks by Professor Xiaying Mei, Dean of UIBE Law School, who emphasized the importance of interdisciplinary collaboration in shaping forward-looking digital asset policies. He highlighted UIBE’s long-standing contributions to international financial law and praised the event as a milestone in advancing China’s engagement with global fintech governance.
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The first session focused on IMF’s role in fintech and digital currency development, led by Ms. Yan Liu, Deputy General Counsel at the IMF. She outlined the organization’s efforts to assist member countries in strengthening legal frameworks for digital currencies, particularly in areas such as monetary law, cross-border payments, and private sector implications. Ms. Liu commended China’s pilot programs for its digital yuan (e-CNY), noting their potential to inform global best practices.
Dr. Ke Chen, Senior Financial Sector Expert at the IMF, addressed anti-money laundering (AML) obligations for digital asset service providers, stressing the need for robust international cooperation. She pointed out that while technological advancements offer efficiency gains, they also introduce new risks—especially in jurisdictions with fragmented regulatory oversight.
Academic Perspectives on CBDCs and Legal Frameworks
During the panel discussion, scholars explored diverse legal and economic dimensions of digital currencies:
- Professor Lishi Guo (Peking University) suggested that lessons from dematerialized securities could guide the legal treatment of digital currencies.
- Professor Xiaoyan Song (Shanghai University of Finance and Economics) advocated for cautious central bank approaches, emphasizing stability over rapid adoption.
- Professor Simin Gao (Tsinghua University) called for stronger private law mechanisms to govern user rights and transactional integrity in digital finance.
- Professor Huiqiang Xing (Central University of Finance and Economics) analyzed the disruptive impact of CBDCs on traditional banking models, particularly regarding deposit displacement.
- Lecturer Yin Xu Huang (Renmin University) presented findings from ongoing research into wholesale CBDCs—digital currencies used between financial institutions—highlighting their potential to streamline interbank settlements.
Several speakers underscored the philosophical underpinnings of cryptocurrency innovation. Professor Mei revisited the foundational logic behind Bitcoin’s creation, urging policymakers to understand not just the technology but the socio-economic motivations driving decentralization.
Privacy, Governance, and Regulatory Challenges
A recurring theme was data privacy and legal governance in digital finance. Dr. Bowen Shang (Peking University) argued for a solid legal foundation to balance financial transparency with individual privacy rights. Given the vast amount of transactional data generated by digital currencies, he warned against unchecked surveillance and called for clear data protection standards.
Grace Jackson, Financial Sector Expert at the IMF, observed that differing national legal systems make global harmonization difficult. However, she stressed that regulatory clarity—especially around licensing and operational requirements for crypto service providers—is essential to prevent regulatory arbitrage.
Marianne Bechara, Senior Legal Advisor at the IMF, expressed strong interest in China’s future digital currency experiments, particularly in cross-border applications and interoperability with other financial systems.
Exploring Cryptocurrency Regulation and Judicial Practice
The second half of the symposium turned to cryptocurrencies as private assets and their treatment under existing legal regimes. Ms. Liu provided an overview of the IMF’s work on virtual assets, outlining nine key elements for effective regulation: legal clarity, consumer protection, market integrity, AML/CFT compliance, cross-border coordination, technological neutrality, scalability, resilience, and inclusiveness.
Dr. Ke Chen expanded on jurisdictional complexities in regulating decentralized networks, noting that enforcement often hinges on identifying regulated intermediaries—such as exchanges or custodians—rather than the assets themselves.
Academic and legal practitioners offered grounded insights into real-world challenges:
- Professor Shinan Cao (UIBE School of Finance) analyzed why China maintains strict controls on private cryptocurrencies, citing financial stability concerns and capital flow management.
- Associate Professor Binghao Zhao (China University of Political Science and Law) delved into judicial challenges in seizing and valuing crypto assets during litigation or insolvency proceedings.
- Lecturer Jing Li (Shanghai University of Political Science and Law) examined the constitutional dimensions of digital money, questioning whether it qualifies as “property” under current legal definitions.
- Lawyer Sa Xiao (Beijing Dacheng Law Firm) shared case studies from Chinese courts, where virtual currencies are often treated as property despite lacking legal tender status—a nuance that affects criminal sentencing and asset recovery.
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Core Keywords Integration
This symposium touched upon several core keywords central to modern financial discourse:
digital currency, cryptocurrency, central bank digital currency (CBDC), financial regulation, anti-money laundering (AML), fintech law, virtual assets, and cross-border payments. These terms were naturally interwoven throughout expert presentations and debates, reflecting their critical relevance to both policy design and academic inquiry.
Frequently Asked Questions
Q: What is the difference between CBDCs and cryptocurrencies like Bitcoin?
A: Central bank digital currencies (CBDCs) are state-issued digital forms of fiat money with full legal tender status. In contrast, cryptocurrencies like Bitcoin are decentralized, privately issued assets not backed by any government.
Q: Why are AML regulations important for digital assets?
A: Due to their pseudonymous nature and cross-border ease of transfer, digital assets can be exploited for money laundering. Strong AML frameworks help ensure transparency and accountability in crypto transactions.
Q: Can individuals own cryptocurrency legally in China?
A: While owning cryptocurrency is not explicitly criminalized, trading and mining are heavily restricted. Financial institutions are prohibited from offering crypto-related services.
Q: How do CBDCs affect commercial banks?
A: If widely adopted, retail CBDCs could reduce bank deposits, potentially limiting lending capacity. This necessitates careful design to avoid destabilizing the existing financial system.
Q: What role does the IMF play in digital currency policy?
A: The IMF advises member countries on legal and macroeconomic implications of digital currencies, promotes international regulatory coordination, and supports capacity building in emerging economies.
Q: Is privacy protected in CBDC systems?
A: Privacy levels vary by design. Some CBDC models allow anonymous small transactions while enabling traceability for larger ones to prevent illicit use.
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Conclusion
The symposium marked a significant step toward deeper Sino-international collaboration on digital finance governance. By bridging academic research, regulatory insight, and practical experience, it advanced understanding of how law must evolve alongside technology. As digital currencies become increasingly embedded in global finance, events like this underscore the need for balanced, informed, and cooperative policymaking.