China Coin

The government of Beijing wants to put an end to the latest cryptocurrency transactions, such as Bitcoin, which are still being made from China, by blocking access to foreign platforms and withdrawing their applications from local mobile platforms.

The objective is, in the name of “financial stability”, to put out the “last fires” of virtual currencies in China and to end fundraising in cryptocurrencies, “which are growing again,” the official Jinrong publication explained on Sunday. Shibao, financial magazine under the aegis of the central bank (PBOC).

The communist regime had already hardened the tone last fall against electronic currencies, such as the bitcoin: China-based trading platforms had to cease operations in September, and the authorities strictly prohibited any fund raising in cryptocurrencies (ICO). in the country.

The consequence was that the large Chinese platforms, which hoarded more than 20% of the planetary volume of the bitcoins in August, have gone on to have less than 1% of the world exchanges of cryptocurrencies, according to the Jinrong Shibao.

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But the enthusiasm of some Chinese investors prompted them to look for alternatives, such as sites specializing in cryptocurrency trading, direct transactions from private to private, and access to platforms abroad, especially in Hong Kong or Japan, out of reach of Chinese regulators.

Channel constellation

In the ubiquitous Chinese (WeChat, QQ) or Russian (Telegram) social networks, very popular discussion forums were set up to carry out transactions in common, while advertisements on virtual currencies and ICO operations proliferated on the Chinese Internet.

It is this constellation of exchange channels, always accessible from China, with which they want to finish the authorities “reinforcing their supervision in a sustained manner”, affirms the Jinrong Shibao.

According to this publication, the financial regulators will work with the telecommunications authorities to close the incriminated internet sites, and block the downloading of mobile applications that allow access to illegal collections of funds in cryptocurrencies.

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Measures, not specified, will also be taken against foreign platforms, and the PBOC has ordered the Chinese payment system operators to initiate a “rectification” campaign to ensure that the money that transits through their systems does not come from the trade of cryptocurrencies.

This new twist of China occurs at a time when the bitcoin – the cryptocurrency star – is losing the brightness that it had in 2017.

This Monday was trading at less than US $ 8,000, after having approached in December to US $ 20,000. In effect, the market is affected by the hardening of regulators in Asia, by the problems of some platforms and by an excessive valuation that acquired a clear bubble aspect, with the consequent fear of its outbreak.


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