China has Been Cracking Down on Cryptocurrency

china cryptocurrency

The country of China has been cracking down on the cryptocurrency industry by targeting several websites and mobile apps that offer ways to exchange different cryptocurrencies. Beijing has released plans to block any domestic access to Chinese and offshore cryptocurrency platforms that would allow for any type of centralized trading platform. The authorities in the country have also claimed that they will target companies and people who provide different services for the industry.

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They have not described in detail how they will carry out these plans up until this point, but it seems like it will occur quite soon. Back in September of 2017, the country shocked the entirety of the cryptocurrency world by banning the use of initial coin offerings within the country. For those who don’t know, an initial coin offering or ICO is essentially the same as an IPO. Companies issue coins instead of stock, which the investor can then either hold for value or convert to another cryptocurrency or fiat currency. The country chose to put a block on this type of fundraising, as well as shutting down several major cryptocurrency exchanges within the country. This is the first time that a country had attempted and succeeded at regulating and otherwise unregulated industry.

This was met with a large amount of criticism, and ended up shocking the market altogether. In the end, many decided to move their businesses to Japan or other nearby countries who have much less stringent regulation on the industry. Around the world, many countries have begun to attempt to put regulatory measures on this industry, but they have been met with no avail. The hopes are high that instead of impeding the work of this new industry, they can work together to help build it in a way that is beneficial for all parties involved.

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