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China blocks access to offshore cryptocurrency exchanges, ICO sites behind the ‘Great Firewall’

China has officially cracked down on offshore cryptocurrency exchanges and ICO sites in a new bid to counter ‘financial risks’

China today unleashed a new offensive upon the burgeoning cryptocurrency market – taking the official step to block access to offshore cryptocurrency exchanges and ICO websites behind its infamous ‘Great Firewall’.

The ‘Great Firewall’ – named after the eponymous natural wonder – is an umbrella term that refers to a combination of legislative acts and technologies that regulate internet access throughout China.

Now, offshore cryptocurrency exchanges and certain ICO websites have found themselves on the (proverbial) other side of the wall, as regulators in China have expressed dissatisfaction with present measures in place that regulate trade on domestic websites in their continuing bid to counter ‘financial risks’.

The South China Morning Post, which is affiliated with the People’s Bank of China, offered that “…to prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs”. 

The publication continued to quip that “ICOs and virtual currency trading did not completely withdraw from China following the official ban… Overseas transactions and regulatory evasion have resumed… [R]isks are still there, fuelled by illegal issuance, and even fraud and pyramid selling.”

Renewed focus

The news comes after crackdowns ordered by Beijing earlier this year, in which peer-to-peer and over-the-counter cryptocurrency trading resources were banned – compounding an embargo on cryptocurrency-to-fiat trading and ICOs which was first implemented in September of 2017.

Similarly, online advertisements pertaining to cryptocurrency trading have apparently disappeared from several popular domestic websites within the country.

It remains to be seen whether the Government of China will officially move to outlaw cryptocurrencies once-and-for-all, or whether detailed regulation will be furnished within the coming months.

Have your say!

What are your thoughts? What effect could China’s recent moves have on the wider cryptocurrency market? Be sure to let us know your opinion in the comments below!

Follow Bryan Smith on Twitter: @bryansmithSA

Posted: Feb 05, 2018 Author: Bryan Smith Categories: Markets