New Report Shows China’s Intentions to Forbid Foreign Exchanges, ICOs

New Report Shows China’s Intentions to Forbid Foreign Exchanges, ICOs

Earlier in mid-January Bloomberg, referring to people aware of the case, reported that Chinese government planned to ban internal access to Chinese and offshore cyber money platforms that allow centralized trading. The view of country’s officials has not changed much since that time.

On February 4, The People’s Bank of China’s media outlet Financial News released a report, according to which the state’s government ostensibly is preparing a range of control gauges as a part of the subsequent clampdown on virtual money.

Our top trading bots

A Storm About to Break

Chinese Central Bank started tightening the crypto ‘screws’ around a year ago. In September 2017, China forbade initial coin offerings, as well as bitcoin trading, which could put the country’s economy at risk. Because of this, lots of domestic crypto exchanges had to shut down.

And this time, the authorities are reportedly going to target all sites (no matter whether it’s an internal or an external one), connected to the industry of virtual assets and ICOs. Merely speaking, the authorities may ban all of them.

According to the government-supported site ThePaper.cn, in the report, published by the Chinese Central Bank’s (PBoC) newspaper, it was said:

“To prevent and mitigate financial risks, authorities will take regulatory measures against ICOs and virtual currency exchanges inside and outside the country, including the banning of relevant businesses, banning and disposing of domestic and foreign exchange virtual currency websites.”

Also, it was reported that after the first stage of the clampdown, the size of yuan-denominated crypto trading has fallen from more than 90% of worldwide trading scope too less than 1%. It was also stated that such results helped to diminish the jeopardies for the economy. Remarkably, the Chinese government released the first ‘Notice’ of an absolute taboo on ICOs at the beginning of September 2017. By the end of the month, the sanctions led to the cessation of trading on crypto platforms.

No Getaway

Moreover, the Sunday’s report hinted that the realization if the regulatory ban is done in accordance with the initial ‘Notice,’ and it was found out that the taboo prompted local traders and investors to dodge the restrictions thanks to foreign exchanges, including Japan and Hong Kong as primary whither. In particular, despite the ban, there still have been proceeded trans-border operations, as well as dodged restrictions on cyber money trading and ICOs practices.

By the way, recently influential bitcoin exchange BTCC, previously based in China, has been acquired by the Hong-Kong blockchain investment fund. Its CEO, Bobby Lee explained the decision about the relocation by the exposure to a broader variety of sources in much freer region, needed for the platform’s survival.

In the report, it was also admitted that the government is aware of jeopardies which still exist, among which there are scams, illicit emission, and even pyramid selling. Perhaps, that is the reason why authorities want to target international crypto websites.

Finally, after January’s Bloomberg report, Reuters cited a senior Chinese PBoC Vice Governor Pan Gongsheng, who said that government should have prohibited centralized trading of cyber coins, as well as banned people and companies that offer this kind of services.

Ripple sold twice as much XRP in the last quarter, as demand grows for its ODL service
Despite the ongoing legal battle with the Securities Exchange Commission, Ripple reported a 97% increase in sales of XRP for Q1. Ripple posted its Q1 markets...
Kazakhstan opens public consultation for central bank digital currency
Kazakhstan’s central bank is planning to examine the potential benefits and risks of adopting a state-backed digital currency.The National Bank of Kazakhstan,...
Slam dunk? LeBron James NFT drop could break Top Shot records
Nonfungible token studio, House of Kibaa, has announced an auction of three “Legendary” NBA Top Shot NFTs depicting slam dunks from renowned pro basketball...
Turkey jails 6 in probe into missing Thodex crypto exchange CEO
Turkish authorities are progressing with an investigation into local cryptocurrency exchange Thodex, which abruptly halted trading last week.On Thursday,...
TeraBlock exchange raises $2.4M to develop crypto newbie-friendly interface
United Kingdom-based crypto exchange TeraBlock announced the completion of a funding round that will reportedly provide an on-ramp for new crypto users.In...
Lockheed Martin adopts blockchain for supply chain management in Switzerland
United States aerospace and defense contractor Lockheed Martin has signed an agreement with SyncFab, a Silicon Valley distributed manufacturing platform,...
Messari researchers slam Binance Smart Chain over centralized validators
Despite Binance supporters celebrating Binance Coin’s (BNB) chart-topping performance for Q1 2021, concerns are growing regarding the centralization of...
Crypto user modifies old school Game Boy for Bitcoin mining
An IT security researcher has been able to adapt Nintendo’s first major handheld game console to mine cryptocurrency.According to a recent YouTube video,...
Best Bitcoin Memes in 2018: ‘Hodling’ and Crying
2018 has not been an easy year for bitcoin, not at all. Whereas it left 2017 at the price of $10,000, it started the new year in a pretty bullish manner...
Samsung Wants to Get UK Cyber-Money Wallet Trademark
Samsung seems to be leaping on a virtual money bandwagon as it has applied for the crypto-wallet trademark in the UK. The act follows the rumours that this...
Harvard Professor Called Cryptos «Lottery Tickets», Predicted BTC to Be $100
In the heat of the crypto-fall, when bitcoin costs 80% less than a year ago, Harvard University Professor Kenneth Rogoff said the «big daddy» is more likely...
Former Mt Gox CEO Claims He Doesn’t Want Bankruptcy Billions
Mark Karpeles, the ex-CEO at Mt Gox, which once used to be the most significant BTC trading venue, said he does not look forward to receiving billions...
Russia Puts Off Cryptoruble’s Issuance Till 2019, Belarus to Adopt Bitcoin Soon
Eastern Europe is aspired to march into the world of cryptocurrency. Recently Ukraine informed about its plans to regulate cyber money in the country...
Bitcoin Was Predicted in a Book Two Decades Ago
“Soon, you will pay for almost any transaction over the Net or World Wide Web at the same time you place it, using cybercash. This new digital form of...
Cryptocurrency Price Correlations
Cryptocurrency repeatedly moved in tandem during specific periods. A great example is the altcoins, the price of which went up after the SEC’s decision...