- Illegal crypto is not allowed in Hainan.
- Local media in China warn about trading in Bitcoin and other cryptocurrencies.
Hainan, a province in China, has again warned about illegal crypto schemes. This is added as a new alert that goes against the growth of virtual currencies.
Officials in China charged with regularizing cryptocurrencies in the Hainan region made new statements about “crypto FUD.” Fear and uncertainty have always hovered over the crypto market, as they have been with Blockchain and illegal methods. The illegal crypto acts in the southern region of China include fundraising, where local media are used to spread the message.
Local media declare that the financial supervision office and branch of the Bank of China should protect itself against illegal acts. These protection measures apply to the average investor looking to grow economically using cryptocurrencies.
Hainan regulators clarify that no organization in the province has called for fundraising using digital bridges. The local media emphasizes that no individual in Hainan would get involved with illegal crypto. Hainan has taken strict measures on cryptocurrencies to protect the economy and prevent illegal acts such as money laundering.
Regulators in the province clarify that financial and payment agencies should not directly or indirectly allow payments in cryptocurrencies. Furthermore, services with illegal crypto must also be circumvented in order not to violate local law.
Although the popular government already expanded the measure taken by the province of China, it has received more pressure. China regularized electronic commerce with cryptocurrencies a month ago.
All these restrictions on cryptocurrencies have brought misery to traders in China. The crypto market has also been affected by these imposed measures, in combination with Elon Musk’s statements.
Illegal crypto restrictions happen after FUD
The creation of various regulatory schemes against cryptocurrencies in China came after a FUD. By May, China Securities Journal maintained that the country’s cryptocurrency ban is a priority. The agency tries to protect the user’s property rights, prevent money laundering, and keep the renminbi as the legal currency.
However, last week the state media spoke badly about Bitcoin and its leverage in the market. Officials said these investments could damage the investment portfolios of citizens in the country. In the report issued by the government, “bitcoin leverage” is crossed out as a “shocking” method due to its risks.
China is not only targeting Bitcoin as illegal crypto because it also has its eye on other well-capped cryptocurrencies. For example, recently, the local media spoke about the Uniswap exchange system, which they marked as “illegal.” The television network claims that on Uniswap, anyone could create their token to form a scam system in the country.
These measures imposed by the southern Chinese province therefore appear to be backed by the popular government at large. China is against cryptocurrencies but tries to enter the market with its own regularized token, called a CBDC.