A member of China’s leading political advisory body recommended not to hinder the development of cryptocurrency market, but rather introduce regulatory measures and establish a national cryptocurrency exchange.

Wang Pengjie, member of the Chinese People’s Political Consultative Conference (CCPPC), suggested to set up a national cryptocurrency trading platform and regulatory system as a way to control digital money, ICO and blockchain, according to Cointelegraph, citing a local news outlet Lie Yun Wang.

During an annual session of China’s regulatory and advisory bodies, Wang Pengjie advised the People’s Bank of China (PBC) and China Securities Regulatory Commission (CSRC) to consider a cryptocurrency ‘approval system’ and a trading platform at a national level.

The meeting comes several days after Chinese media reported that authorities would clamp down on offshore exchanges that cater to local investors.

Yet the member of the advisory agency could not ignore the explosive popularity and price rise of cryptocurrencies, like Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC). Pangije remarked that their total market cap in January 2018 surpassed the market value of Tencent, China’s internet giant.

He mentioned that South Korea had banned anonymous trading, which can tackle the issue of money laundering and other financial crimes, while bitcoin futures in the US are recognised as a derivative product. This is one of the reasons why China should pay attention to the blockchain technology and digital assets.

The official admits that cryptocurrencies carry immense risks for China’s economy and its people due to insufficient regulatory framework and lack of investor awareness. The ‘approval system’ and ‘real name’ system certification, adopted by South Korea, aims at a possible solution of the problem, thinks Wang Pengjie.

“Thus we can provide a formal channel for companies to raise funds and for individual investors to achieve capital appreciation,” said Pengjie.