China’s Next 3 Measures to Stamp out Cryptocurrency Trading and ICOs Completely
China has been making relentless efforts to root out crypto trading and ICO activities, and the country is reported to further crack down on bitcoin-like speculative products and illicit ICO activities.
Just a day ago, the country’s capital Beijing has banned all local commercial venues from hosting crypto-related events. Prior to that, China has introduced a blanket ban on ICOs and crypto trading last September, and later this January the country continued its crackdown on concurrency by limiting power supply in crypto mining. The ban this time targets at communication channels in the country, blocking crypto-related WeChat accounts, media outlets, and hosting venues for crypto events.
Coming on the heels of the latest ban, three more concrete measures on further crypto crackdown are disclosed.
According to a staffer with a local financial authority known as National Internet Financial Risk Rectification Working Group, regulators has achieved its desired goals and avoided the negative impact of bubblish cryptos – a total of 88 domestic cryptocurrency exchanges and 85 initial coin offering (ICO) platforms have been shut down since September 2017; bitcoin Yuan trading has dropped below 5% of the world’s trading from over 90% after the September ban.
The source continued that, to consolidate the progress, regulators would take 3 more measures to maintain financial order and social stability.
- Blocking the 124 cryptocurrency exchanges that have moved their servers out of China but still provide services for Chinese residents. Regulators are closely monitoring these platforms and cutting off the access to them in real time;
- Blocking WeChat accounts, media outlets and websites related to ICOs and crypto trading within the country at regular intervals;
- Prohibiting payment platforms from providing payment service for crypto trading, requiring payment platforms to conduct Know-Your-Customer (KYC) and risk prompts.
All the restrictions are an extension of the cryptocurrency trading ban that the central government first implemented last year, which reiterates the country’s stringent stance on cryptos.