Crypto crackdown: China vows to continue enforcement

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TL;DR Breakdown

  • China says it will intensify crackdown on cryptocurrencies.
  • China stiff crypto regulation forces exchanges out of the country.
  • China rumored to hate crypto because of digital yuan.

China has again reiterated its ongoing effort on crypto crackdown. In a statement on Saturday, the People’s Bank of China (PBOC) said it will maintain high pressure on virtual currency trading hype.

The PBOC made the crypto crackdown statement after lawmakers in the country gave the apex bank what its priorities are in the other half of 2021. It is an indication that the crypto crackdown could be an order from China lawmakers.

Similarly, the PBOC, which appears to be impressed with its effort on crypto crackdown, also congratulated itself for severely cracking down on illegal activities of virtual currency so far.

The apex bank noted that it would not rest on its oars to crackdown on crypto and supervise financial platforms. It highlighted closely monitoring crypto trade hype.

China and its crypto crackdown project

The Asian country has registered its displeasure for cryptocurrencies for about three years now. China restricted crypto trading in 2017 and barred Chinese financial institutions from dealing with crypto. It led many exchange firms to relocate from China, including Binance and OKEx.

The crackdown on crypto and crypto firms in China redoubled after regulators introduced restrictions on crypto mining recently. Restrictions on Bitcoin mining continued to rip through the country throughout June.

The crackdown on Bitcoin mining also had a severe impact on crypto prices as it forced Bitcoin prices down after the move coincided with when Elon Musk announced Tesla would suspend receiving Bitcoin payment owing to environmental concerns.

It is worth noting that Chinese miners accounted for as much as 76 percent of all miners globally yet, China kept on the crackdown on crypto miners.

Conspiracy on China’s hate for crypto

Conspiracy theories have it that China is against digital currencies because it will provide competition for the digital yuan, the China CBDC.

The digital yuan is nearing completion, and full launch as China tries to clear the way and provide a soft landing for the CBDC.

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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