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- Amidst the Russia-Ukraine, and the crypto market 1.5 trillion, following China’s Supreme court declares the crypto-fundraising illegal.
- It is an amendment to a previous legislative document related to cryptocurrency transactions and it will be implemented on 1st March.
- Despite the strict actions of regulators, NFT hype in the country can not be ignored. Since Giant companies like Tencent have joined the market, the interest rates have also sparked.
The crypto market slipped to 1.5 trillion after Russia’s military attack on Ukraine. In these times of turmoil came the announcement of China’s Supreme Court.
The supreme court declares crypto-fundraising illegal. Further, it announced jail time and fines to whoever is suspected.
The new bill, however, is an amendment to a previous legislative document regarding cryptocurrency transactions, and will come into being by 1st March.
Section 8 of Article 2 states the amendment, “illegal fundraising by way of online lending, investment in shares, [and] virtual currency transactions.”, in this ruling.
It is evident from the court’s action, it wants to completely get rid of cryptocurrencies. Once the law comes into action, the authorities will be eligible to charge a fine and file a case on suspects and offenders.
The court ruling states: as per the country’ criminal law, article 176 will be levied on the suspects of illegal fundraising. According to which, those involved in illegally handling public funds will be fined between 50,000 Yuan to 500,000 Yuan (7,900$ to 79,000$) and 3 to 10 years of jail time.
In case of a small amount of fundraising, the offenders will face up to 3 years in prison and penalties between 20,000 Yuan to 200,000 Yuan (respectively $31,65 to $31,658).
Crypto And China’s Regulators War Continues
As the world has already witnessed, China’s crackdown in 2021 and crypto trading and mining in 2017. Now, with the latest amendments has given all the more to take action against the suspects. Therefore, the bill doesn’t come as a shock.
China’s People’s Bank and other significant agencies, already declared cryptocurrency transactions as illegal fundraising in September 2021.
The consequence of the latest move would be interesting to see. When the State Council of China ordered a crackdown on crypto activities in May 2021, many crypto companies and individuals began to migrate. Simultaneously, the Bitcoin price dropped below 30K.
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China’s NFT Hype
NFT hype in the country, however, can not be denied, despite the strict actions of regulators who want to get rid of cryptocurrencies altogether. Since some time now, many tech firms in China have been trying their hands in the NFT space. With big enterprises such as Tencent have joined the market, the interest rate has increased.
Recently, the China-backed Blockchain Service (BSN) also publicized their plans to create a platform that typically supports NFTs. The platform would offer a place for coders with the provision of programming interfaces to create NFTs that are about apps and manage users portals.
The project isn’t associated with cryptocurrencies. However, the BSN’s new platform will only allow the Chinese Yuan to pay for services and purchases, unlike the traditional market using digital assets.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
