The Chinese government’s restrictive moves towards cryptocurrencies continue and the negative effects of these moves on the market are growing. Although the reason behind these moves of the government is unknown, it is thought that the government aims to pave the way for its own cryptocurrency.
China’s largest crypto exchange Huobi has stopped new registrations after the People’s Bank of China declared transactions related to crypto assets illegal, adding a new one to the government’s restrictions. Huobi prevented Chinese users from signing up to the exchange with their mobile phone numbers. Thus, the first decision that the ban from China was effective was taken.
The government has announced that it will take drastic measures:
China has declared all transactions made with cryptocurrencies “illegal”, increasing the pressure on cryptocurrency trading. In the statement made by 10 public institutions, including the People’s Bank of China and the Ministry of Public Security, it was emphasized that they would act “toughly” to protect citizens from risks regarding cryptocurrencies.
In the statement, it was stated that public institutions would work together to eliminate “speculation” about cryptocurrencies, and it was stated that criminal activities such as illegal funding and money laundering with crypto money should be stopped in the country.
‘We will reduce virtual currency speculation’
On the website of the People’s Bank of China, on the subject, the Beijing administration said, “We will decisively reduce virtual currency speculation, related financial activities and inappropriate behavior in order to protect citizens’ assets and maintain economic, financial and social order. ” was included.
The Beijing Administration decided to restrict cryptocurrency mining and transactions in May to protect Chinese citizens from financial risk. In China, where almost half of the world’s bitcoin mining is carried out, miners began to move their activities to other countries after the government’s restrictions.
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