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Chinese police expand cryptocurrency monitoring to cover international operations

China’s Public Information Network Security Supervision service has reportedly begun monitoring foreign cryptocurrency exchanges as well as local platforms that have shifted overseas.

Written by Bryan Smith Published on

According to Chinese business news publication Yicai, China’s Public Information Network Security Supervision service – in conjunction with the Ministry of Public Security – has begun monitoring overseas cryptocurrency exchanges as well as local cryptocurrency services that have shifted overseas.

Yicai’s report elaborates that the Chinese government has elected to expand its operations in a bid to prevent Chinese investors from accessing potential money laundering operations, pyramid schemes, or other forms of investment fraud.

The move marks a new operational phase for Chinese regulators. In September last year, the People’s Bank of China placed a ban on Initial Coin Offerings and further made the landmark decision to close fiat-to-cryptocurrency trading.

That move resulted in several local platforms uprooting from their Chinese base and moving to service international communities, which Chinese regulators have accordingly responded to by issuing new warnings tied to global cryptocurrency activities.

In early January, the Chinese National Internet Finance Association warned against “disguised” Initial Coin Offering activities that, while operating globally, remained accessible to local investors.

Similarly, Chinese government elected block access to offshore cryptocurrency exchanges and ICO websites behind its infamous ‘Great Firewall’ earlier this year. 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.

At the time, 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”. 

Further, it is reported that online advertisements pertaining to cryptocurrency trading have apparently disappeared from several popular domestic websites within the country.

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What are your thoughts? How could the Chinese government’s international monitoring operations affect broader cryptocurrency markets? Be sure to let us know your view on Twitter – join the conversation @coininsidercom!

Written by

South African technology journalist, podcaster, photographer and filmmaker. Hodling - BTC, NEO, ETH.@bryansmithsa

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