Chinese Government Continues to Ban Crypto-Related Services in the Region

The central bank of China seems to be adamant about its recent crackdown on cryptocurrency mining and trading in the region. Deputy Director Yin Youping from Financial Consumer Rights Protection Bureau recently told the media the same. His comments were published in the Chinese government media outlet People’s Daily.

Speaking to the journalists, he claimed that Bitcoin and other cryptocurrencies are purely speculative assets and investment options. He further warned the citizens of China to stay away from such types of scams and fake investment opportunities. However, against all odds, cryptocurrencies keep becoming more popular both in China and many other parts of the world.

PBoC to Implement Regulatory Crackdown on Cryptocurrencies

Due to the increasing popularity of cryptocurrencies in every part of the world, investors from China are also taking an increased interest in trading. Keeping this trend in mind, the federal authorities of China have banned many crypto-related accounts on their local social media platforms. Furthermore, the site searches for cryptocurrency exchange platforms like Binance, OKEx, and Huobi are also censored on the local search engines.

The PBoC representatives have been busy busting down the illegal digital asset trading and mining operations in the region. They are working in tandem with the China Banking network and state regulatory commission for the Insurance Commission. Currently, the intelligence is trying to promote people for reporting cryptocurrency-related crimes and scams.

In July, China decided to crack down on crypto mining projects and restricted several crypto mining operators from commencing their business. The out-of-commission miners had no option but to migrate from the region. During this time, the global hashrates for Bitcoin dropped by 56%, and the price movement also suffered a sharp fall.

However, most of the miners have started to open up their shops once again after a migration period. Many western countries around the world have opened up their arms towards cryptocurrency mining options. At present, Bitcoin has recovered from its 50% crash, and it is trading for $47K at press time. On the other hand, SEC has yet to greenlit any Bitcoin-based ETF application in the region, which keeps investors anticipating the danger of another federal clampdown.