Chinese authorities against crypto exchanges Trading platforms are getting closed due to the increasing pressure

Colin Baseman

In China, the cryptocurrencies and business related to it are being badmouthed.  Recently, 5 local digital coins exchanges were closed. What future holds for this area?

Crypto exchange BISS has currently stopped operation on the initiative of the authorities

Recently, the BISS site suspended its own work at the request of officials, more than a dozen workers were arrested. The crypto currency exchanges Akdex and Bitsoda also announced plans to suspend operations. Btuex and IDAX platforms refused to serve users from China due to pressure from the authorities.

Chinese regulators have tightened policy towards the crypto industry. As a result, market participants move assets to jurisdictions with greater security. On November 22, there was a sharp increase in transactions with stablecoin USDT, the daily volume of them reached 66 million dollars. At the same time, the Central Bank of China announced the measures that will be taken to oppose the trade in crypto currencies.

Official statements

In October, XI Jinping announced plans to develop blockchain technology. Chinese media have emphasized that the promotion of blockchain does not mean that the authorities approve of cryptocurrencies.

In the fall of 2019, the social public Weibo blocked the account of the crypto exchange Binance. The official reason is the accusation of violations of Chinese law.

The media said they are looking for and struggling with activity that is related to crypto trading and token sales. Information about them is sent to the Central Bank. On Chinese state television, cryptocurrencies are referred to as scams, Ponzi schemes and unregistered securities.

In 2017, the Chinese authorities banned cryptocurrency trading.

In Beijing, 10 people involved in the crypto exchange operations were arrested.

The work of the Chinese exchange BISS was stopped at the request of officials. More than a dozen of its employees were arrested by police.

The managing partner of Primitive Ventures, Dovi Wang reported the arrest. The detainees are likely to be charged with fraudulent activity.

The Shanghai branch of the Bank of China announced plans to cryptocurrency trading control.

The office of the Central Bank of China in Shanghai released a document that specifies measures to counter the trade in digital money and token sales.

Dovi Wang noted the main points:

  • Law enforcement agencies will work to detect and counteract the activities of crypto exchanges.
  • The Bank of China has warned investors to draw a clear line between cryptocurrencies and blockchain, as the former involve numerous risks.
  • The Central Bank of China is studying token offering schemes, including IFO, ICO, IEO and STO, considering them illegal and contrary to the law. The regulator perceives them as pyramids and frauds.
  • The Central Bank of China will increase control over gateways and payment channels for Fiat currencies. These actions are aimed at countering foreign platforms that provide cryptocurrency trading services to the Chinese.

Television channel CCTV1, which is the mouthpiece of the Communist party of China, has subjected digital money to powerful criticism,

The hype around blockchain does not mean that the authorities will allow speculation in cryptocurrencies

The Communist party's newspaper the People's Daily has prompted investors not to think that Chinese authorities ' support for blockchain technology extends to cryptocurrencies. It urged market participants to be rational.

The statement said: "Blockchain has great prospects for the future, but we should be rational. The development of blockchain technology was accompanied by achievements in the field of cryptocurrencies. However, we will do our best to avoid speculating on them."

The Shanghai stock exchange sent a request to market participants who cooperate with Chinese brokers not to create a stir. The letter says: "We ask trading platforms connected with blockchain to make statements only on the basis of available facts. To avoid malicious hype and exaggeration."

Social network Weibo blocked Binance account for violation of the law

The account of the crypto exchange Binance was blocked by the Chinese social network Weibo. The official reason is violation of the current legislation. The company has removed all content of the page and subscribers of the trading platform.

There is a message on the exchange profile: "Account blocked for violation of regulatory requirements, legislation and provisions of the Weibo Public Convention."

There is no exact information about the real reason for blocking the account. Some media reported that the blockage was the result of a tightening of Weibo policy.

Another possible cause of discontent is Binance's launch of a p2p trading opportunity for Chinese using Alipay and WeChat. This service was tested for owners of gadgets with Android OS. It is expected that in the future p2p trading will be available for iOS and web-interface.

The Central Bank of China reported that 25 thousand blockchain companies intended to issue their own tokens. Yedong Ju, who heads the Beijing blockchain Association, said that about 70% of blockchain organizations in China have attempted tokenization. Only 4 of the thousands of companies focus on the technology of distributed registry.

The ICOs ban from 2017 applies to marketing organizations that promote the initial offer of coins and claim to belong to the blockchain, which is not really the case. Mining operations in China are not yet banned, citizens of the country can still have crypto assets. In the article "Investments in ICO" you can read more about the features of the initial placement of tokens.

The Chinese authorities are consistently increasing pressure against crypto exchanges. This has a certain impact on the situation in the market of digital coins. Our portal provides information about the latest news in the field of cryptocurrencies. In other articles, you can explore information about blockchain technologies.