In the past year, the cryptocurrency market has taken multiple heavy punches from the Chinese government. The market took a hit like a warrior, but the combos did this to many cryptocurrency investors. The market's inadequate performance in 20 outperforms its thousands of gains in comparison to its twenty-one.
Since the 20th, the Chinese government has taken control of cryptocurrency, but nothing has been compared to what was implemented in the 21st. (See this article for a detailed analysis of the official government-issued notice)
2017 was the banner year for the cryptocurrency market with all the attention and growth. The extreme price volatility forced the central bank to take more final action, including the ban on primary currency offers (ICOs) and the clampdown on domestic cryptocurrency exchanges. Soon, Chinese mining factories were forced to close, citing excess power. Many exchanges and factories have relocated overseas to avoid regulation but are accessible to Chinese investors. Even so, they still fail to survive the Chinese dragon's claws.
In the latest series of government-led efforts to monitor and ban cryptocurrency trading among Chinese investors, China has increased its "le gol ey" to monitor foreign cryptocurrency exchanges. The measures are taken, from restriction to restriction in the submission of accounts to companies and bank accounts suspected of dealing with foreign crypto-exchanges and related activities. There are also rumors going on in the Chinese community about implementing more final measures to give Chinese investors a chance to trade on foreign platforms.
"We will have to wait for a higher authority order on whether there will be further regulatory action." Parts of an interview with the team leader of the China Public Information Network Security Monitoring Agency, February 26, under the Ministry of Public Safety
Why! Why !?
Imagine your child investing in a digital product (in this case, cryptocurrency) to save or invest in the fact that there is no way to verify his or her authenticity and value. He or she can be lucky and make it rich or lose everything by bursting the crypto-bubble. Scale it now to millions of Chinese citizens and we're talking about billions of Chinese yuan.
The market is full of scams and nonsense ICOs. (I'm sure you've heard of sending coins to random addresses, promising to double people's investment and double investment). Many ignorant investors are in it for the money and will worry less about the technology and innovation behind it. The value of many cryptocurrencies stems from market speculation. During the crypto-boom in 2017, attend any ICO with a renowned advisor, board, promising team or decent hype, and your investment is guaranteed at least 3X.
The lack of understanding of the firm and the technology behind it, combined with the proliferation of ICOs, is a recipe for disaster. Central bank members reported that about 90% of ICOs involved fraud or illicit funds. In my opinion, the Chinese government wants to make sure that cryptocurrency is controllable. And it is not too big to fail in the Chinese community. While China is aggressive and controversial, China is taking the right steps toward a safer, more regulated cryptocurrency world. In reality, this may be the best move the country has taken in decades.
Will China issue an ultimatum and invalidate cryptocurrency? I highly doubt it is so meaningless to do so. Currently, financial institutions are prohibited from possessing any crypto assets when individuals are allowed but there are restrictions on any type of business.
A state-run cryptocurrency exchange?
Named at the annual "Two Sessions" (because two major parties – the National People's Congress (NPC) and the National Committee of the Chinese People's National Advisory Committee (CPC)) have participated in this forum. In the first week of March, leaders discussed the latest issues and needed. Gather to amend the law.
Wang Pengji, a member of the NPCC, jumped at the prospects of launching an educational project on China's blockchain and cryptocurrency, as well as a state-run digital asset trading platform. However, a certified account will be required to allow trading on the proposed platform.
"A regulated and efficient cryptocurrency exchange platform, in collaboration with the People's Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC), will serve as a formal way for companies" through ICOs) and investors to retain their digital appreciation and capital Fundraise for Achievement ”in two sessions E. Parts of the Panggie presentation.
Marching towards a blockchain nation
Governments and central banks around the world have struggled to cope with the growing popularity of cryptocurrency; One thing is sure, however, that everyone has accepted the blockchain.
Despite the cryptocurrency crackdown, blockchain has been gaining popularity and acceptance at various levels. The Chinese government has been supporting blockchain initiatives and adopting the technology. In fact, the People of China (PBOC) is working on digital currencies and has done mock transactions with several commercial banks in the country. It is not yet certain that digital currencies will be decentralized and cryptocurrency features such as ignorance and irreversibility will be provided. It would be no surprise if China did not want to be named, which is the last thing China wants in their country, if only to be seen as a digital Chinese yuan. However, made as a close alternative to the Chinese Yuan, digital currency will be subject to existing monetary policies and laws.
Governor of the People's of China, Zhao Shiichuan. Source: CNBC
"There has been a lot of cryptocurrency explosive growth that can have a significant negative impact on consumers and retail investors. We do not like consumers (cryptocurrency) products that use huge opportunities to visualize ideas that give people the impression of being rich overnight" Friday, March 8th. Parts of the Chow Xiaochuan Interview.
In a media release on Friday March 8th, the governor of the People's Bank of China, Zhao Jiachuan, criticized the cryptocurrency projects that have been gaining momentum in the crypto-boom of cash and fuel markets. He also noted that the development of digital currency is technically unavoidable & # 39;
At a regional level, many Chinese cities are launching blockchain initiatives to promote growth in their region. Hangzhou, known for its Alibaba headquarters, says that blockchain technology will be considered one of the city's top priorities in 2018. Blockchain technology in the city's financial services has also proposed the building of an incentive center for local government adoption in Chengdu.
These national tenants and Alibaba have also partnered with blockchain companies or started working on their own projects. Blockchain companies, such as Vecchen, have also partnered with Chinese companies to promote supply chain transparency in China.
All sources point to the fact that China is working towards a blockchain nation. China has always had an open mind towards emerging technologies such as mobile payments and Artificial Intelligence. From now on, there is no doubt that China will be the first blockchain-enabled country. Will we see the Chinese government fall behind and allow its citizens to trade again? Probably, when the market has matured and become less volatile, certainly not in 2018.