China frightened about crypto’s rebirth, issues warning

Among the top nations against crypto surge in the world is China. However, bothered by its resurgence in the country, regulators have urged authorities to curb the use of the currency within its border.

China’s securities regulators had to urge Beijing authorities to carry out relevant actions to prevent the usage of cryptocurrencies by the public.

This announcement was made on Friday, Dec. 27 on the China Securities Regulatory Commission (CSRC) website.

CSRC again highlighted the risks of the resurgence of digital currencies, such as the growth of crypto trading activities, digital currency mortgage provision and introduction of zero-interest loans.

They further highlighted the serious violations of the People’s Bank of China (PBoC) provisions the rebirth of crypto will bring as four Beijing-local regulators signed the announcement.

To address risks, the regulators issued a warning and called local authorities to combat cryptocurrency-related illegal activities in Beijing.

The warning also stressed china’s non-support of crypto as companies and individuals cannot transact with the virtual currency.

Story so far, China’s continued fight against crypto

In Nov.21, People’s Bank of China warned that it was taking action against organizations that involved in trading in crypto like bitcoin.

Earlier, the city of Shenzhen opened up on an investigation into crypto trading operations, which was also championed by the People’s Bank.

Crypto industry leaders, including Binance CEO Changpeng Zhao, nonetheless praised what he saw as an effort to remove bad actors.

In late October, the Asian country showed support for blockchain technology, it however, warned that speculations about crypto should be forgotten as blockchain should not be read as support for crypto.

The People’s Daily, a daily publication wrote at that time that the rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.

People’s Bank of China’s deputy director Mu Changchun said that the digital form of the yet-to-be-released yuan will be different to Bitcoin and stablecoins as china also prepares to launch its digital currency.

Why crypto remains illegal in China

Bitcoin is essentially banned in the Asian country. All banks and other financial institutions like payment processors are prohibited from transacting or dealing in Bitcoin.

Cryptocurrency exchanges are banned as the Chinese government has cracked down on miners.

These regulatory actions are aimed at controlling the increasing mania involving decentralized, non-regulated cryptocurrencies which have recently soared in the globe.