The Chinese administration is ramping up its crackdown on crypto entities, all the while still advocating for the broader adoption of blockchain technology. This renewed offensive has compelled numerous trading platforms, including OTC desks, to halt their services.
Beijing's intensified crackdown coincides with a period of steep declines in the value of cryptocurrencies. Observers have noted that this crackdown may have added to the negative pressure on both bitcoin and altcoin markets.
Beijing Intensifies the Clampdown on Crypto Trading
China is stepping up its efforts to purge the nation of bitcoin trading activities, as reported by Bloomberg in 2019. This initiative has led to five crypto exchanges ceasing their operations in the region. report The exchanges closing down during this crackdown include Bitsoda, Akdex, Bituex, and Biss. Many of these platforms are now shifting their focus to international clients and are geofencing Chinese users.
ICO trading remains banned in the country. In recent developments, the authorities have targeted exchanges conducting crypto trading without official clearance.
In 2017, the government banned Recently, Shenzhen authorities clamped down on 39 cryptocurrency exchanges accused of illegal trading activities. This raid was executed in coordination with the central bank, the People's Bank of China (PBoC).
Prior to the Shenzhen raid, it was speculated that Shanghai authorities had also targeted cryptocurrency exchanges. Rumors circulated that Binance's Shanghai office might have been involved, but CEO Changpeng Zhao refuted these claims, stating there was no such office in Shanghai. identified This crackdown has prompted investors to secure their funds. The ImToken wallet platform handled $66 million in Tether transactions from 10 million users, doubling their activity compared to October.
While these measures appear detrimental to China's crypto market, TRON CEO Justin Sun suggests that the long-term prospects for digital currencies and blockchain remain optimistic. deny In addition to targeting crypto trading, China is also cracking down on OTC desks. After the 2017 ban, OTC platforms became popular for crypto trading, but now, this option is also at risk due to government action.
The recent crackdown in China's crypto sector aligns with a significant drop in the value of bitcoin and altcoins. Many in the crypto community believe China's actions are partly to blame for this downturn, even though there has been a slight market recovery.
Although China currently appears unfriendly towards the crypto scene, the government distinguishes between cryptocurrencies and the potential of distributed ledger technology (DLT).
OTC Desks are not Immune to the Renewed Crackdown in China
In October 2019, China's President Xi Jinping declared that blockchain would become a 'core technology' for the country, calling for further development and integration in the sector.
The government is also educating the public on blockchain benefits, with a new cryptographic law set to be implemented in January 2020.
China Supports Blockchain Development, Not Bitcoin Adoption
Osato Avan-Nomayo, a Bitcoin enthusiast, shares insights on the latest in the Bitcoin ecosystem. When not deep in crypto news, he's either engaged with his favorite word games or pondering philosophical questions. Reach [email protected].
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