Major Crackdown of Crypto Businesses Shakes China

e_abrams

Trader
Dec 11, 2020
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The government of China just perpetuated its stern position against crypto assets and any crypto-related activities by introducing new and improved reforms. The announcement was made last Friday that China is issuing a renewed crackdown on crypto activities.

The People’s Bank of China revealed that institutions offering order matching for cryptos, token issuance, and trading activities are henceforth prohibited in the country. The nation has also revealed that it wishes to limit and altogether eliminate the hype surrounding crypto assets in an attempt to “protect” the Chinese populace from the cryptocurrency market.

Moreover, the reformers will also launch investigations into customer support departments as part of the ‘Notice on Further Preventing and Disposing of the Risk of Hype in Virtual Currency Trading’.

The bank is keen on taking down any website or app involved in any crypto-related activity. The Chinese government is essentially on the hunt for any semblance of cryptocurrency-related businesses and promoters, amongst other activities, in a nationwide attempt at eradicating money laundering and gambling.

There has been backlash, as is expected, from journalists around the world that are speculating that Chinese BTC mining will turn to the US, but also that crypto businesses will be forced to relocate to different international locations.

This major crackdown led to a 5% plummet in Bitcoin price. Meanwhile, Ethereum lost 7% of its value after the news surfaced.
Source
It looks like they're trying to destroy the Chinese crypto industry entirely. They've tried multiple times already, time will tell whether they will succeed now.