China Set to Begin Real Crypto Crackdown in 2021?
In September, China would have extended its continued cryptocurrency repression among crypto traders, investors and even on the various exchange platforms in the said country. The news has been dispersed over several pages of crypto and blogs as it is a great threat to the industry. It mentioned the expanded application against illegal mining of digital money, as well as the prevention of financial transactions involving crypto-assets.
According to the Chinese Central Bank, all trading transactions including token issuance, order matching and other services offered overseas but directly connected to the country’s scope are all illegal. Bitcoin and Ethereum traders shall greatly be affected by this report. These are just a few of the leading cryptocurrencies that are banned in China.
Moving forward, the said crypto crackdown is set to begin at the latter part of the year. It was enhanced and polished with regulators, courts and enforcement agencies. With that, this action seems impossible to be prevented by any calls, statements or manifestation from the crypto users. The authorities are now looking at how to implement the terms fairly for both citizens and the government.
For my co-traders out there, my advice is to not take the banning issue seriously. However, the Bitcoin banning has caused several price drops, and I am fully aware of that. I was also alarmed that it might lead to a wider market selloff.
In reality, these are not new in a communist country such as China. There was an instance in 2013 where the People’s Bank of China restricted banks’ access to Biction. Not long after, Bitcoin and other cryptocurrencies skyrocketed in the country. It didn’t prohibit the public from participating in any crypto trading activity.
Despite the efforts of China to clamp down the crypto industry, it has not fully pulled down the digital money and its believers. But will it happen?
Probably yes, but the country needs to coordinate across multiple jurisdictions, institutions and entities. By far, I cannot envision a country such as China to be empty with cryptocurrency.
“The act of banning bitcoin would require preventing open-source software code from being run and preventing digital signatures (created by cryptographic keys) from being broadcast on the internet,” writer Park Lewis mentioned in his blog.
There will always be a way for crypto trades to invest and patriotize their passion in investing.