The governor of People’s Bank of China (PBOC), Zhou Xiaochuan, stated both private and publicly allotted cryptocurrencies.

While giving a press briefing on Friday last week, the governor of China’s annual event PBoC singled out cryptocurrency projects which seem to be shifting from their supposed role in support of what is speculation.

Zhou explained that the central bank is not happy about “speculative cryptocurrencies products.” He further said that the bank doesn’t formally recognize virtual currencies such as bitcoin. He also enlightened that the bank is in the process of monitoring projects like bitcoin as well as initial coin offerings (ICO) and are planning to ramp up regulatory actions on the same.

Zhou said that lots of cryptocurrencies had realized explosive growth and this can mainly cause a notable adverse effect on the consumers as well as retail investors. The governor noted their displeasure in cryptocurrencies products which make massive prospect for gossip that gives the people an illusion that they can get rich overnight.

This comment may be signifying a growing level of scrutiny down the road by People’s Bank of China over ICO as well as trading services which are also available for the domestic investors, even after regulators issued a ban on the ICOs, thus essentially pushing for fiat-to-crypto exchanges out of the local market.

It also comes after the Chinese regulators reportedly took measures to block social media channels offered by cryptocurrency exchanges and still make available trading services within the country.

Moreover, the central bank still holds what appears to be a positive view on blockchain development, and projects trying to bring excellent services to consumers. That position is also in line with the PBoC’s efforts to study applications of the tech through its digital currency research lab.

Zhou called on those behind such efforts to be cautious and not to grow too fast, adding that for blockchain projects with technological potentials, they should conduct thorough testing before rolling out services. Otherwise, a reckless expansion may incur severe security and financial stability issues.