The Chinese government is fighting against the ban they made on cryptocurrency exchanges in recent news, by offering up licenses for state approved changes. Those exchanges would need to have the necessary Know Your Customer (KYC) as well as Anti-Money Laundering (AML) systems in place in order to do business.
One state owned news publication known as Xinhua, recently stated that the government is simply concerned with the amount of potential there is for criminals to use cryptocurrency for illegal deals. The paper emphasized the fact that cryptocurrency has become the most popular choice as of recently, for criminals to conduct business under the table.
As many who follow the cryptocurrency industry know, the government in China as of last month, put a ban on cryptocurrency exchanges, leading to a price drop in almost all sectors of the cryptocurrency industry.
Since that time, there have been many changes in the industry. Japan has moved to some sort of regulation as they realize the industry is in fact lucrative, while Chine may now be moving to do something similar. South Korea on the other hand, has put a strong hand on cryptocurrency and is taking on a similar response that China had earlier in September.
The Japanese government officially gave licenses to eleven cryptocurrency exchanges, meaning that trading in the country would not be so difficult. After this, the price of the largest cryptocurrency by market capitalization, bitcoin, shot up above the $4,000 number.
The ban from the government in China has done nothing but create a black market for cryptocurrency, as bans usually do. Many have been using other options such as over-the-counter (OTC) methods or peer-to-peer trading platforms. This creates an even more difficult situation.
With the market on cryptocurrency rising, China and the likes have to figure out