BTCC, the crypto firm that once ran the most prolific exchange in Asia, announced last week that it had exited the cryptocurrency business. The crypto firm said it had sold its shares in the Singapore exchange ZG.com in May 2020. Most of the cryptocurrency exchanges based in China migrated overseas years ago, during the first cryptocurrency crackdown back in 2017. According to statements, this was the result of the continued regulatory pressure Beijing is exerting on cryptocurrency businesses.
The People’s Bank of China is now targeting OTC platforms.
The Chinese government is tightening its grip on crypto to avoid capital losses. The People’s Bank of China is now targeting OTC (over-the-counter) businesses and cryptocurrency-related accounts. As reported earlier, P2P and OTC businesses targeted will have their accounts frozen. This will also affect cryptocurrency brokers in the country, which now largely run the whole market due to restrictions. However, an offshoot of the company now operating in Hong Kong issued a statement explaining the crackdown would not affect them. The company stressed that Mainland China’s restrictions would not affect its cash flow.
BTCC will now shift to building blockchain-based applications.
The crypto firm BTCC will now shift to building blockchain-based applications. The government of China completely supports the use of blockchain and promotes it as one of its focuses in its fourth industrial revolution program. While cryptocurrency exchanges are also feeling the heat from the Chinese government, miners are taking the worst hit. The government has closed several mining facilities and issued mining bans in many of its major provinces. This has affected the operation of the ousted miners, who are now seeking shelter in other regions and countries.