A newspaper associated with China’s financial and markets regulators; Shanghai Securities News reports this news on Thursday. Authorities decide to chock the access of 124 websites in China operating by offshore cryptocurrency exchanges. Especially, that provides trading services to mainland citizens.
Authorities are continuously identifying the police domestic websites to offer details on cryptocurrency trading and ICOs (initial coin offerings). The report says that the exact reason behind this decision is not entirely clear, as there was no response from the central bank to calls made by SCMP reporters. Though, some speculation derives that the crackdown is the reason for growing financial risk and instability.
The government is continually monitoring new cryptocurrency news websites and announcements regarding Initial Coin Offerings. If they find any, the government is said to shut them down instantly. They will also deny the access of user by blocking their respective IP addresses.
This move was taken after Beijing local authorities ban few hotels from hosting any events regarding cryptocurrency. Last week, they also initiated blocking blockchain news accounts occurring on WeChat.
China Blocking Cryptocurrency Exchanges
This antipathy for all things of China incorporating cryptocurrency is not a surprise. Back in September 2017, authorities in China prohibited every new ICO with cryptocurrency exchanges throughout the country.
However, the concern for Chinese regulators states that ICOs are just an “unauthorized illegal fundraising activities.” Their concerns are somewhere in place as several ICOs in China identified doing scams, robbing their hard cash with dubious claims.
That same month, the regulators in China issued all cryptocurrency exchanges existing in the country to cease their trading practices. Looking at the results, many ICO and cryptocurrency ventures was told to pack up their bags and shift to their neighboring region Singapore. This might allow them to work as they want boasting more crypto-friendly regulation.
Over the previous year, across 90 cryptocurrency exchanges and 85 ICOs have been shut down in China. The head of the Leading Group of Internet Financial Risks Remediation, Pan Gongsheng also told that the cryptocurrency ban in China is the correct decision.
If things were still the way they were at the beginning of the year, over 80 percent of the world’s bitcoin trading and ICO financing would take place in China. What would things look like today? It’s really quite scary.
China is not going to stop their crypto businesses. Officials are also denying cryptocurrency news accounts on social media. Some companies that were disturbed include Deepchain Huobi News, CoinDaily, etc.
This news follows President Xi Jinping induction on optimism amongst crypto traders in China when he named blockchain technology as the new industrial revolution. He believes that the technology could benefit government as well as their people.
The IT Ministry in China also opens a research facility naming it “the Trusted Blockchain Open Lab”. This was done just days after the announcement of the bitcoin trading ban. In fact, last year, the central bank has already built the prototype national cryptocurrency. However, the exact timetable is still hidden and unknown.
So while continuing the ban, cryptocurrency might ostensibly secure the financial system. China might also miss the opportunity to release its own cryptocurrency. Also, as the relationship is seen between U.S. and China, a strong cryptocurrency can heal China to put a stop to the U.S. dollar’s dominance.