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- Will China’s U-turn on crypto impact the market?
The Peoples Bank of China (PBOC) has reiterated its position on crypto trading, vowing the immediate disposal of cryptocurrency exchanges.
For weeks China’s strict attitude towards cryptocurrencies has seemingly morphed into something less stringent. Blockchain technology has been championed within the country, and a lighter touch was implemented in regards to bitcoin mining.
China’s State Media Just Headlined Bitcoin to 1.4 Billion People https://t.co/xBuQuLPd70
— CCN Markets (@CCNMarkets) November 11, 2019
This inconceivable 360 on crypto – which has been responsible for a considerable increase in overall sentiment – has come full circle. In a classic case of blockchain, not bitcoin, China is now looking to reinstill its uncompromising stance on cryptocurrency trading.
According to an official notice from the PBOC, the need to address the trading ban cropped up due to the increase in “virtual currency speculation.” The People’s Republic has been entirely on board the blockchain bandwagon of late, which in turn has lead to a perceived increase in trading activity.
The roughly-translated notice reads:
The People’s Bank of China will continue to implement the requirements of the “Announcement” [2017 ban] and continuously monitor the virtual currency business activities within the jurisdiction. Once it is discovered, it will be disposed of immediately, and it will be prevented from happening early.
The notice began with an explainer, that read:
In recent years, speculations related to virtual currency (such as ICO, IFO, IEO, IMO, and STO) have been refurbished and speculative, prices have skyrocketed, and risks have gathered rapidly. Relevant financing entities through the illegal sale, circulation of tokens, raising funds to investors or bitcoin, Ethereum and other virtual currency, which is…