Any time Beijing has announced the collapse of their companies, jokes going on between crypterati and China has already banned cryptocurrency transactions 18 times. Chinese government agencies have issued more and more illegal bans on various crypto products since 2013; all this time, Chinese crypto companies have done well. Turning the 19th time can be a charm.
On September 24, the central bank of China and the National Development and Reform Commission issued two documents. One restrictions on cryptocurrency mining following the initial crash in May, and others has declared that all cryptocurrency transactions are illegal and all companies that provide cryptocurrency transactions to Chinese citizens for economic reasons. Some of the unresolved practices were posted on crypto Twitter, but what happens when banning this activity is that this time China is important.
“The ban is in full swing. It’s not a trivial matter, “said Jonathan Padilla, co-founder and deputy director of the Future of Digital Currency Initiative at Stanford, who conducted a survey of China’s largest bank.” The Ministry of Homeland Security, the Supreme Court, and the Supreme People’s Procuratorate – suggest that coercion should be taken seriously.
Minor exchanges, wallets, and other cryptocurrency companies has announced that he will no longer provide employment for upstream users China and to establish a database for all Chinese IP addresses in their operations. Based on the statement, which outlines foreign exchange rations for Chinese nationals, the companies appear to have acted with extreme caution. Luisa Kinzius, leader of China’s aid agency Sinolytics, says: “The citizens who may be at risk of these crimes are unknown.” “[But] The declaration also applies to any Chinese national working in other crypto-related companies abroad, stating that their activities are illegal and endangering their legal status. “
Continued Chinese oppression of bitcoin and other cryptocurrencies it tends to happen all the time. The unrestricted and unrestrained nature of Crypto contradicts the Chinese government’s views on the state-controlled economy. In addition, Beijing sees cryptocurrencies as part of its irrational thinking. “The Chinese government has just reiterated in its new five-year vision – China’s economic vision for the next five years – that the economic system should support real wealth, not ideas,” Kinzius said. “China is very skeptical of financial thinking because of economic stability – and, of course, cryptocurrency is heavily driven by speculation.”
All of these problems are compounded by recent developments. In September 2020, China announced its annual growth plan 22NOTE2 air by 2030 and carbon-free by 2060. This includes the destruction of cryptocurrency mines, energy loss and often carbon shock still use the cryptocurrency network, which Chinese governments consider to be of little use to the country’s economy. On the other hand, China is testing its Digital Chinese Yuan, a government-sponsored currency designed to help access cryptocurrency without secrecy and to give people the opportunity to trade – or, perhaps, because they are not under government control. In Beijing’s view, allowing the existence of the Digital Chinese Yuan and any other objects is absurd. China, Kinzius says, was interested in “avoiding competition [from] cryptocurrensets, ”especially as they prepare to make the Digital Chinese Yuan available to foreign users at the 2022 Beijing Winter Olympics.
“To ensure that digital money is used efficiently, China has no interest in other promotional, attractive ways to choose from,” he says.