The Chinese government plans to prevent Bitcoin and other crypto currencies from trading on stock exchanges in China and to close crypto exchanges. Media reports in agreement refer to insider information from sources that do not wish to be named.
This decision represents a further setback for the previously booming crypto industry, which has been able to gain a foothold in the Asian region and especially in the People’s Republic of China this year. The step takes place one week after Chinese officials have issued a general ban on ICOs in their country. The news caused great uncertainty among investors worldwide at the start of the week and triggered a collective fall in prices on the crypto exchanges.
The same cryptosoft are now to be completely closed in China
This is the result of a draft by the Chinese central bank, which contains a series of instructions designed to prevent Chinese stock exchanges from trading cryptosoft currencies. According to this, direct P2P transactions are to remain unaffected by a new ban. The Chinese central bank did not comment on this today. Read more about it: Cryptosoft Review 2018 » Full Scam Check
The effect of the crypto stock market ban will continue to be felt by Chinese investors and miners. It can therefore be assumed that the general trading volume in crypto will fall. Bitcoin and other crypto currencies will continue to circulate in China without exchanges for the time being, but the exchange will probably become slower and much riskier. Chinese regulators are unlikely to penalise P2P transactions, as the government is unable to monitor the entire circulation of digital money.
Crypto trader transactions still allowed
The ban on crypto trader currencies on Chinese stock exchanges can be seen as a logical consequence of the overall development of the Chinese government’s dealings with the domestic crypto market. Like last week’s suspension of ICOs, the ban is a reaction to the government’s increasing loss of control over its people’s financial activities. In the first half of this year in particular, the market capitalisation of Bitcoin and other crypto currencies in China had risen so rapidly that, after months of weighing up its options, the state regulatory authority felt compelled to now follow suit with a rapid backlash. More info: Is Crypto Trader a Scam? Read This Review Before You Sign Up!
In contrast to last week, the price swing in the crypto markets was also not so extreme; currently (as of Monday 12 noon) prices have recovered and are now rising again. The three largest Chinese stock exchanges OKCoin, BTCC and Huobi testified on Monday morning that they had not yet received any instructions from the regulatory authority and opened their operations on a regular basis.
ICO ban only temporary
Meanwhile, Hi Bing, a researcher at the government-sponsored Institute of Finance and Banking, spoke in an interview about the government’s ICO ban. He reiterated that the ban on ICOs in China is only a temporary solution by the government. In reality, it is not a ban, but merely a pause in the issuance of new crypto currencies. This means that the option of an early resumption of ICOs in the future is on the table.
Rather, the government is currently working on a solution to regulate and control the ICO market in order to make legal ICOs possible. China is aware of the potential of ICOs and crypto currencies and is currently examining the possibility of exploiting it.
Bing’s statements underline the assumption that the great shock about the ban last week probably occurred prematurely and that the action can be classified as a short circuit reaction of the Chinese government. Such a large economic nation will not be able to afford in the long run to simply push aside such a promising and promising industry, especially as the international competitive pressure will certainly not diminish.