The Chinese government has begun to add pressure to domestic cryptocurrency activity over the past few weeks.
According to CNBC, the country’s capital Beijing is still in support of developing projects using blockchain technology but is clamping down on wild conjecture in cryptocurrencies. This comes a year following their ban on initial coin offering (ICO) projects.
While China used to be a key component in the Bitcoin trading industry, and the country still holds a majority of Bitcoin mining rigs, there have been increasingly strict regulations as cryptocurrencies have become more popular and more valued. Owing to regulations, Bitcoin trading with the Chinese Yuan has been banned in the capital city.
CNBC reported that “five government bodies — the People’s Bank of China, the Banking Regulatory Commission, the Central Cyberspace Affairs Commission, the Ministry of Public Security and the State Administration for Market Regulation — issued a warning about risks from illegal fundraising under the guise of “blockchain” and “cryptocurrencies. The announcement also called out those who used overseas servers while targeting Chinese investors.”
This came on the same day that Tencent, a tech juggernaut, had announced that it would be banning cryptocurrency transactions through WeChat pay, which came just after the mobile messaging app froze all cryptocurrency-related accounts.
China also has been pedantic about Bitcoin conference activity and recently banned all blockchain events in the Chaoyang district in Beijing.
Although several users on Twitter expressed that this does not seem to be significant, saying that Chaoyang is “too small” to take notice, it must be marked that the district is a hub of Beijing and this order looks as though it might be the first of several future bans in the city and the country.
The initial ban was on 9/4/2017, many Chinese crypto veterans already foresee another ban coming up around this anniversary time, it’s a very common pattern of chinese regulator since they will revisit the effectiveness in 1yr anniversary and more actions will be taken if needed
— Dovey Wan (@DoveyWan) August 22, 2018