{"headers":{"Content-Type":"application\/x-www-form-urlencoded"},"body":"source_lang=&target_lang=NL&tag_handling=xml&split_sentences=1&preserve_formatting=1&text=China+and+cryptocurrency+-+what+you+need+to+know&text=With+a+new+crackdown+on+cryptocurrency%2C+the+Chinese+government+continues+to+extend+its+anti-Bitcoin+stance.&text=The+quick+rise+of+cryptocurrencies+and+Bitcoin+adoption+has+led+to+a+contrast+of+opinions+for+the+future+of+digital+currencies+and+traditional+finance.+%3Cstrong%3EBold%3C%2Fstrong%3E%0A%0AWith+countries+like+El+Salvador+and+Ukraine+allowing+and+testing+Bitcoin+as+legal+tender+and+others+looking+to+implement+central+bank+digital+currencies+%28CBDCs%29+in+the+country%2C+there%27s+no+shortage+of+nations+looking+to+adopt+the+concept+of+digital+currencies+into+their+economy.+On+the+other+side+of+the+coin%2C+however%2C+there+are+bankers%2C+government+figures+and+cryptocurrency+critics+that+predict+that+Bitcoin+and+other+digital+assets+will+pose+a+threat+to+the+financial+system+with+unpredictable+negative+results.%0A%3Ch2%3EChina+and+cryptocurrency+-+highly+regulated+and+outright+bans%3C%2Fh2%3E%0AThe+Chinese+government+has+held+an+anti-cryptocurrency+stance+for+years%2C+initially+clamping+down+Bitcoin+and+cryptocurrency-related+activity+in+2017.+Since+then%2C+the+nation%27s+financial+authority+has+not+let+up+on+the+decentralised+digital+assets%2C+with+extensive+crackdowns+on+cryptocurrency+mining+and+trading.+%3Cstrong%3EBold%3C%2Fstrong%3E%0A%0AIn+September+2021%2C+China+intensified+the+crackdown+on+cryptocurrency+activity+-+vowing+to+make+sure+the%3Cem%3E%C2%A0%22illegal%22+%3C%2Fem%3Eactivity+is+rooted+out+of+the+country+and+slapping+a+country-wide+mining+ban+on+the+country.+The+new+regulations+in+place+have+stated+in+no+uncertain+terms+that+institutions+in+the+country+are+not+allowed+to+accept+virtual+currencies+as+any+means+of+accepting+or+making+payment+and+that+they+cannot+provide+any+exchange+services+between+cryptocurrencies+and+foreign+currencies.+Furthermore%2C+institutions+cannot+provide+any+services+related+to+cryptocurrency+savings+and+pledging+or+loans.+%3Cstrong%3EBold%3C%2Fstrong%3E%0A%0AJoseph+Edwards%2C+head+of+research+at+cryptocurrency+broker+Enigma+Securities+in+London+commented+on+the+news%2C+saying+that+cryptocurrency+and+Bitcoin%27s+decline+in+price+is+in+response+to+investor%27s+uncertainty+about+trading+across+the+market+with+a+blanket+ban+in+China+saying%3A+%3Cstrong%3EBold%3C%2Fstrong%3E%0A%3Cp+class%3D%22Text__text___3eVx1j+Text__dark-grey___AS2I_p+Text__regular___Bh17t-+Text__large___1i0u1F+Body__base___25kqPt+Body__large_body___3g04wK+ArticleBody__element___3UrnEs%22+data-testid%3D%22paragraph-9%22%3E%22%3Cem%3EThere%27s+a+degree+of+panic+in+the+air.+Crypto+continues+to+exist+in+a+grey+area+of+legality+across+the+board+in+China.%22%3C%2Fem%3E%3C%2Fp%3E%0A%0A%3Ch2+data-testid%3D%22paragraph-9%22%3EWhy+China+ban+is+not+necessarily+a+bad+thing%3C%2Fh2%3E%0A%3Cp+data-testid%3D%22paragraph-9%22%3EHowever%2C+others+believe+that+the+Chinese+banning+cryptocurrency+is+not+a+bad+thing+for+Bitcoin+long-term.+Previously%2C+it+has+been+estimated+that+%3Ca+href%3D%22https%3A%2F%2Fcoinshares.com%2Fassets%2Fresources%2FResearch%2Fbitcoin-mining-network-december-2019.pdf%22%3E65%25+of+all+Bitcoin+mining+was+in+China%3C%2Fa%3E.%3C%2Fp%3E%0A%3Cp+data-testid%3D%22paragraph-9%22%3E%3Cimg+class%3D%22aligncenter+wp-image-1765+size-full%22+src%3D%22https%3A%2F%2Fwww.icodata.io%2Fwp-content%2Fuploads%2FScreenshot-2021-09-24-at-15.03.44-e1632488694116.png%22+alt%3D%22%22+width%3D%22547%22+height%3D%22309%22+%2F%3E%3C%2Fp%3E%0A%3Cp+data-testid%3D%22paragraph-9%22%3E%3Cem%3ESource%3A+CoinShares%3C%2Fem%3E%3C%2Fp%3E%0A%3Cp+data-testid%3D%22paragraph-9%22%3EWith+the+crackdown+on+mining+in+the+country%2C+miners+have+been+relocating+to+other+countries+to+continue+Bitcoin+production.+The+relocation+of+Bitcoin+mining+helps+ease+concerns+of+China%27s+mining+dominance+and+redistributing+the+mining+across+the+globe.+One+of+the+major+implications+here+is+that+the+shift+away+from+China+might+have+a+positive+environmental+impact+on+the+industry.+It+has+been+predicted+that+miners+will+shift+towards+the+United+States+to+continue+mining%3B+specifically+to+the+state+of+Texas.+Since+the+state+boasts+some+of+the+lowest+energy+prices+because+of+a+range+of+more+energy-efficient+electricity+production%2C+the+region+is+both+attractive+to+miners+and+better+for+the+environment+than+mining+in+China.%3C%2Fp%3E%0A%3Cp+data-testid%3D%22paragraph-9%22%3E%3Cimg+src%3D%22https%3A%2F%2Fcoindesk-coindesk-prod.cdn.arcpublishing.com%2Fresizer%2FtTh5jFMD5mlk4xzXvrQnbNuidVs%3D%2F400x300%2Ffilters%3Aformat%28png%29%3Aquality%2870%29%2Fcloudfront-us-east-1.images.arcpublishing.com%2Fcoindesk%2FEBXNZXEQTZEUZGDCJQPLQQTW5A.png%22+%2F%3E%3C%2Fp%3E%0A%3Cp+data-testid%3D%22paragraph-9%22%3E%3Cem%3ESource%3A+Global+Cryptoasset+Benchmarking+Study%3C%2Fem%3E%3C%2Fp%3E%0A%0A%3Ch2%3EChinese+central+bank+executive+warns+against+Bitcoin%3C%2Fh2%3E%0AAccording+to+Wen+Xinxiang%2C+the+director+of+the+payment+and+settlement+department+at+the+People%E2%80%99s+Bank+of+China%2C+the+rise+of+cryptocurrencies+like+Bitcoin+as+well+as+stablecoins+will+weaken+security+in+the+financial+system+and+poses+major+challenges+in+the+economy+and+user+protection.+%3Cstrong%3EBold%3C%2Fstrong%3E%0A%0AThe+%3Ca+href%3D%22https%3A%2F%2Fnews.cnstock.com%2Fnews%2Cbwkx-202109-4759928.htm%22%3Eexecutive+warns%3C%2Fa%3E+that+Bitcoin+stands+as+an+asset+that+can+be+used+in+the+unregulated+market+in+illicit+scenarios.+He+argued+that+the+anonymity+laced+within+the+blockchain+technology+that+cryptocurrencies+sit+upon+make+them+appealing+for+transactions+linked+to+illegal+activity+such+as+money+laundering.+If+the+financial+sector+hopes+to+include+digital+means%2C+he+believes+that+more+measures+will+need+to+be+put+in+place.+He+also+noted+that+using+digital+assets+and+cryptocurrencies+to+transfer+illegal+funds+across+borders+will+be+a+typical+scenario+-+one+that+will+ultimately+compete+with+traditional+finance+rather+than+aid+it.%0A%3Cblockquote%3E%3Cem%3E%E2%80%9CThe+challenge+of+virtual+currency+is+huge.+When+the+traditional+financial+system+responds+to+the+competition+in+the+financial+industry+from+big+tech+companies%2C+it+can+also+rely+on+traditional+methods+such+as+law+and+supervision+to+increase+anti-monopoly+efforts+and+strengthen+personal+privacy+and+information+protection.%E2%80%9D%3C%2Fem%3E%3C%2Fblockquote%3E%0AThe+comments+from+the+banking+executive+are+not+surprising+given+the+Chinese+government%27s+stance+on+cryptocurrency.","timeout":15}