It seems that the Chinese government is determined to completely eradicate the crypto business.
China is again set to tighten crypto restrictions within its borders. Now, the Chinese government is targeting online platforms and mobile apps providing trading services to cryptocurrency enthusiasts, according to a recent report by Bloomberg.
According to Bloomberg’s unnamed source, the authorities will block domestic access to all Chinese citizens as well as the international platforms offering cryptocurrency trading services.
The Chinese government will also target individuals and companies that provide market making, settlement and clearing services for centralized trading, Bloomberg reported, though the authorities might spare the small peer-to-peer transactions.
Recently, another report surfaced that the Chinese authorities are looking for measures to curb the still booming crypto mining business in the country. According to a leaked report, an order has been issued to local governmental bodies to limit the amount of electricity allotted for the mining of cryptocurrency along with limitations on land use, tax, and environmental protection, thus finally forcing mining businesses to make an “orderly exit.”
Though officials did not confirm these regulations, the mining giants are already looking for new homes overseas, most likely in the Canadian region of Quebec, according to various reports.
Recently, one Bitcoin mining pool – ViaBTC – closed its doors, though there was no direct connection between this and the restrictive regulations.
Recently, the National Internet Finance Association of China, a self-regulatory organization focused on online finance, issued a warning to investors regarding so-called ‘Initial Miner Offerings’, telling them to be cautious when dealing with the nascent fundraising mechanism.
The Chinese crackdown on cryptocurrencies started in September last year, as the authorities banned ICOs. But the government didn’t stop there. Within days, it also enforced a crackdown on cryptocurrency exchanges, which drove all of them out of business overnight. This was a huge blow to the cryptocurrency market, not only within China but also worldwide, as China was the largest Bitcoin market then.
Through the crypto market plunged for a while after that, the demand in other emerging markets like Japan and South Korea gave it a boost, and the crypto economy soared again.