What Direction Is China Heading With Cryptocurrency?

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china cryptocurrency

Chinese officials settled on a “comprehensive ban” on platforms that permit buying and selling virtual currency in China, announced by The Wall Street Journal. China is planning to eliminate Bitcoin exchanges, according to the reports from earlier this month. This plan does not end here, government officials gave a specific directive on the nation’s currency exchanges.

WSJ stated that a document was passed around during a private meeting on Friday, directing exchanges based in Beijing to “unwind their operations and provide information on bank accounts used for clients’ deposits by Wednesday.” Officials told industry executives about a decision on the ban during the meeting in Beijing. Sources reported mainland access to foreign bitcoin exchanges online like Coinbase in the US would also be restricted by the country’s Great Firewall.

Until last week, traders thought that China would still allow peer-to-peer or over-the-counter platforms that permit buyers and sellers to connect. Bitcoin’s popularity could have also raised concerns from authorities that believe the cryptocurrency could “weaken the official control of the country’s money supply,” because everyday investors have progressively bought into Bitcoin, betting against the yuan. China has also banned initial coin offerings it the beginning of September as an illegal practice of public financing.

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