After the largest cryptocurrencies were in the process of being shut down throughout the country of China, they have now officially stopped working. The ban that was announced during September, finally entered the last of its clauses and proceeded to ensure that the last exchange shut down. The bill made it illegal for any mainland Chinese investors to invest in cryptocurrency unless they were operating offshore. This has sent the market to different locations as opposed to stopping its use.
One of the largest bitcoin trading platforms is known as Huobi, which instead of shutting down, has just moved nearby to Singapore, Hong Kong, and South Korea.
Bitcoin is only one of a few cryptocurrencies to become huge. As the largest cryptocurrency by market capitalization, bitcoin continues to be the world leader in the industry. Many investment firms have taken the ban as an excuse to move their business elsewhere as opposed to stopping investing altogether.
The Chinese have now set a precedent to the rest of the world that attempting to eliminate the use of cryptocurrencies does not fully work, rather what works is helping to regulate. Since there are hundreds of millions of dollars currently invested cryptocurrency space, any attempt to ban it is only a failed attempt, and will ultimately only take money out of that country and take revenue that could’ve gone to the government, to other bodies of government.
Instead of Chinese investors choosing to invest in different markets, many have chosen to take their cryptocurrency related companies to offshore places such as the aforementioned countries. Because of this, China has gone from being one of the leaders in the market on cryptocurrency, to a place where the market essentially doesn’t exist any longer. Hopefully other countries will come in and show what happens when they let cryptocurrency run free.