China Warns Against ‘Illegal’ Fundraising And Crypto Trading
Since last year, the Chinese government has taken a stern position against cryptocurrencies. The government has followed through in its efforts to completely stamp out cryptocurrencies. On Friday, August 24, the government, through five government agencies, released a joint warning against ‘illegal fundraising and cryptocurrency trades’. This warning is the latest attempt by the government of China to ‘protect’ its citizens from cryptocurrencies. The warning emphasized trades made overseas, which make it difficult for the government to track trades.
Five Government Bodies Team Up Against Cryptocurrencies
The statement was authored by the following government agencies: China’s Banking Regulatory Commission, State Administration for Market Regulation, Central Cyberspace Affairs Commission, Ministry of Public Security and The People’s Bank of China. The warning was aimed at projects that are set up in, or are using addresses overseas but soliciting funding from, China.
“Such activities are not really based on blockchain technology, but rather the practice of speculative blockchain concepts for illegal fundraising, pyramid schemes, and fraud,”
The announcement comes days after the government banned crypto-related promotions in Beijing. That ban would first take effect in the district Chaoyang but will eventually extend to other districts. The ban covers all public areas, including, shopping malls, hotels, and offices.
The government has also recently identified 124 new platforms that will be added to its China’s “Great Firewall”, blocking access within the nation. The Chinese government says it will also make it harder for startups to operate in China, promising to completely eradicate all crypto-related activities.
China has taken a rather surprising position on cryptocurrencies. Experts thought that the country would reverse its position following the ban on bitcoin exchanges and ICO’s in September. But, the regulations and bans have only increased.
China’s position is also very surprising given that this emerging market has provided jobs to thousands in the country.
It was the original home for the largest crypto exchange Binance, before the company moved to Japan. It’s also the home country for Vechain; a blockchain company working to help enterprises with logistics and tracking. Moreover, it’s also no secret that China hosts a majority of mining hardware in the world.
There is clearly interest in these currencies coming from China, which seems to strike fear in the government. That, or the government sees that coins pose a challenge to fiat, but are still unstable and easily manipulated.
We’ll need to keep an eye on how China views cryptos going forward, though this is a discouraging sign from the Asian nation.