Over the past year, the cryptocurrency market has received a series of heavy blows from the Chinese government. The market took the best as a fighter, but the pair did a lot of damage to many cryptocurrencies. Market deficit performance in 2017 These are just a few of the stellar profits in 2017.
Linn Since 2013, the Chinese government has taken steps to control the cryptocurrency, but Nothing compared to what was done in 2017 (see this article for a detailed analysis of the official announcement given by the Chinese government)
2017 was the year of the flagship market for all of its growth and development. Extreme volatility has forced the central bank to take more drastic measures, including a ban on the first coin supply (ICO) and restrictions on domestic currency exchanges. Mining companies in China were soon forced to close due to overcrowding. Many exchanges and factories have been relocated overseas to avoid regulation, but they remain accessible to Chinese investors. However, they still could not escape the Chinese dragon’s claws.
China has stepped up its “eagle eye” to monitor foreign exchange transactions in a series of government-led efforts to control and block foreign exchange. Suspicions of companies and bank accounts suspected of conducting transactions with foreign crypto exchanges and related transactions will be taken, ranging from account restrictions to frozen accounts. There are also rumors circulating in the Chinese community about the most serious measures to be taken by Chinese investors in foreign exchange-enabled forums.
We need to wait for orders from higher authorities to take further control. Interview with the team leader of the Chinese Public Information Network Security Regulatory Agency at the Ministry of Public Security February 28
Imagine that your child has no choice but to invest in a digital product. He or she can make him or her lucky and rich, or he or she will lose everything when the secret bubble explodes. Now bring up those millions of Chinese citizens and we are talking about billions of Chinese yuan.
The market is full of frauds and meaningless ICOs. (I’m sure you’ve heard of people who promise to double their investments and the useless IOO and send coins to random addresses). Many unsavvy investors are in it for money and do not worry too much about the technology and innovation behind it. The value of many secret currencies is derived from market estimates. Linn Participate in any ICO during the 2017 crypto-boom with any reputable consultant, promising team or good news outlet and you will be guaranteed at least 3X of your investments.
Lack of understanding of the organization and the technology behind it, from the IOO. Combined with multiplication, it is a recipe for destruction. According to Central Bank members, about 90% of ICOs are fraudulent or involved in money laundering. In my opinion, the Chinese government wants to ensure that the secrecy remains uncontrollable in the “Chinese community” and is not too big. Despite its aggressive and controversial nature, China is taking the right steps toward a safer, more controlled cryptocurrency world. In fact, it may be the best step the country has taken in decades.
Will China make it a last resort to legalize secrecy? I doubt it very much because it is useless. Financial institutions are now allowed for individuals, but they are not allowed to engage in any transaction.
Government-controlled cryptocurrency exchange?
The annual “two sessions” (the two largest parties – the National People’s Congress (NPC)) and the National Committee of the People’s Political Consultative Conference (CPC) of China (CPC) were both held in the first week of March. They are participating. Gather to discuss current issues and make necessary legal amendments.
NCCC Member Wang Pengji has pledged to launch a state-run digital asset marketing platform and launches educational projects on blockchain and encryption in China. However, the proposed platform requires a verified account to allow transactions.
The establishment of relevant regulations and the cooperation of the People’s Bank of China (PBC) and the China Securities Regulatory Commission (CSRC) will serve as a standard way for companies to raise funds. Two Articles of Wang Pengji’s Approach to ICOs and Investors to Gain Digital Assets.
March to a Blockchain Nation
Governments and central banks have struggled to cope with the growing popularity of cryptocurrencies around the world. But one thing is for sure, they are all blocked.
Despite the currency explosion, blockchain is gaining popularity and adoption at various levels. The Chinese government is supporting the blockchain initiatives and adopting the technology. In fact, the People’s Bank of China (DCC) has been trading in digital currency and has engaged in fraudulent transactions with some of the country’s commercial banks. It is still unconfirmed if the digital currency is decentralized and offers secret features such as anonymity and invariability. It is not surprising that the only thing that China wants in their country is a hidden digital Chinese yuan. However, as the recent replacement of the Chinese yuan, the digital currency will comply with current monetary policies and laws.
Governor of the People’s Bank of China Source CNBC
“Many secret currencies have seen an explosion that could have a significant negative impact on consumers and retailers. We don’t want cryptocurrency to take advantage of the overarching potential of overnight wealth.” Interview with Joo Ziaowa on Friday, March 9th.
During a media briefing on Friday, March 9, the Governor of the People’s Bank of China criticized Zhu Zhou, who secretly targeted crypto-boom projects targeting cash and oil market estimates. He also pointed out that digital currency development is ‘technologically inevitable’.
At the regional level, many Chinese cities are driving blockchain activities to promote growth in their region. Hanshu, known as Alibaba’s headquarters, is one of the city’s top priorities in 2018, according to blockchain technology. The local administration of Chengdu City is also responsible for the city’s financial services.
Local coalitions such as Tencent and Alibaba have also partnered with blockchain organizations or projects initiated by them. Blockchain companies such as Vekan have entered into several partnerships with Chinese companies to improve supply chain transparency in China.
All indications are that China is working towards blocking countries. China is always open to new technologies such as mobile payment and artificial intelligence. From now on, China will no doubt be the first country to wake up to blockchain. Do we see the Chinese government going backwards and making its citizens trade again? Probably not in 2018, when the market is mature and unchanging.