Home
News
- China’s central bank announced that it will continue to impose strict regulations on cryptocurrency trade, extending the country’s most severe crackdown since 2017
- The PBoC convened a hearing with major banks and payments businesses in June, reiterating that they are not allowed to offer crypto-related services
- The Chinese government’s restriction on Bitcoin use has taken the form of severely restricting or closing down Chinese Bitcoin exchanges, which are the primary means of obtaining Bitcoin other than peer-to-peer trading
China’s central bank announced that it will continue to impose strict regulations on cryptocurrency trade, extending the country’s most severe crackdown since 2017. The People’s Bank of China released the results of a meeting on Saturday in which regulators reviewed monetary policy success in the first half of this year and future measures for the rest of 2021. Crypto trading and platform firms were referenced, most likely alluding to financial behemoths like Ant Group. Since Ant Group’s planned blockbuster IPO in November 2020 was unexpectedly canceled, the PBoC and other government authorities have increased supervision of the internet finance industry. The central bank announced on Saturday that it will continue to work on platform industry regulation reforms.
The PBoC also stated that it will promote green finance, open up financial markets, maintain its de-risking drive, and push for yuan internationalization and the digital yuan’s deployment.
Three financial sector groups stated in May that their members would no longer be able to provide virtual currency services such as bank account opening. The statement was made via the central bank’s official channels, implying support for the measures. The PBoC convened a hearing with major banks and payments businesses in June, reiterating that they are not allowed to offer crypto-related services. The State Council’s Financial Stability Committee said in May that it will tighten down on crypto mining since it poses a financial risk.
The Chinese government continues to crack down on cryptocurrency trade and mining. Onlookers, including the founder of China’s first bitcoin exchange, BTC China, Bobby Lee, foresee a comprehensive crypto ban later this year. Since the cryptocurrency’s creation, the phrase China prohibits Bitcoin has often appeared in the news, indicating the government’s aversion to money that is not under its control.
The Chinese government’s restriction on Bitcoin use has taken the form of severely restricting or closing down Chinese Bitcoin exchanges, which are the primary means of obtaining Bitcoin other than peer-to-peer trading. Despite the tensions, China has established itself as a major player in the bitcoin business in two distinct ways.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
