Cryptocurrency regulations in China: The journey and the current status

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China, known for many great things had prevented ICOs to be held within the nation. Cryptocurrency trading was also impossible.

By the end of 2018, Leonhard Weese, the Bitcoin Association president in Hong Kong, noticed some unusual behaviors from the authorities noting that they are distressed and tensed about the statement, rather than what people actually do. When it is disclosed that the Bitcoin trading is going well in China, then the government will again try to put a stop on it.

A group of People’s Bank of China (PBoC) advised that the mining of Bitcoin should be comprehensively eliminated from the country as it consumes a lot of resources and feeds speculation of cryptocurrencies.

 

The beginning of 2018:

On 17th Day of January 2018, the central bank ordered that banks should close all payment channels involved with virtual currencies.

The ban which was on mining and OTC trading was later expanded to bound unacknowledged currency exchanges. The Finance Association of China recognized that the ban also prevented trading on offshore platforms of cryptocurrency. Cryptocurrency accounts on social media were also turned off.

 

Regulations imposed by the Government in China:

In the middle of the month of August, authorities in the district of Chaoyang, Beijing prevented commercial venue from holding events whose theme was cryptocurrency.

On the very same day, more than 100 crypto platforms were opening the doors for crypto trading using offshore IP addresses were noted by the China National Fintech Risk Rectification (CNFRR) and then were marked for closing it.

PBoC demonstrated the statistics that showed the dramatical declination of bitcoin trading over time.

Even after such a substantial ban, cryptocurrency traders in China are still accessing the virtual currency platforms and ICOs.

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