China is one country that has outlawed cryptocurrencies. Local authorities always clamp down on activities related to virtual currencies, arresting perpetrators and prosecuting them. With resolve to see the stopping of all illegal crypto traders, the government imposed an outright ban. This ban directly effects digital currency trades and also reiterates its unwavering stance on the illegality of such transactions.
Results Are Trickling In
People’s Bank of China (PBC) is releasing some data indicating that the outright ban on cryptocurrency is working. The ban is attracting widespread condemnation from crypto traders and pundits. It is resulting in the local currency, Chinese Yuan (RMB), being used for Bitcoin exchange of less than one per cent, according to local media reports. Just last year, the BTC/RMB trades accounted for over 90% of their global trade volume, necessitating the urgency for total clampdown on crypto traders.
Clampdowns
During September 2017, the Chinese government outlawed Initial Coin Offerings (ICOs) in its domain, threatening to arrest and prosecute offenders. To flush out cryptocurrency users in the country, Chinese regulators busted many crypto traders and ventures. In total, the regulators shattered eighty-eight virtual currency exchanges and eight-five ICOs. The report maintained the government has no immediate plan to lift the ban on cryptocurrency. It also cites financial scams associated with cryptocurrency transactions. While the efforts to end cryptocurrency activities are on, some exchanges such as Huobi, Binance and OKEx, are taking critical steps to dodge the government’s sledge hammer by refining their modus operandi.
Blockchain-based Research
In spite of these calculated efforts to stop cryptocurrency-related activities in China, the Chinese government has nonetheless invested heavily in blockchain-based research. This signals that the Asian superpower will release a national cryptocurrency in no time. In May, Huobi released a statement, saying that it is collaborating with Chinese President Xi Jinping. The collaboration will create a $1 billion Creative Blockchain Lab in China under the regulatory auspices of the local regulators. Furthermore, this is one of the many steps the government is taking to reform its traditional systems using blockchain technology. With this move, all eyes are now on the People’s Bank of China as experts believe that the government is making concerted efforts toward launching its own cryptocurrency.
Pledge To Global Regulations
The local regulator released a March report outlining a regulatory framework for checkmating the booming global cryptocurrency industry. In the report, the Bank detailed efforts it was willing to make to ensure a feasible, global, regulatory framework is put in place.
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