Last year, the cryptocurrency market took several punches from the Chinese government. The market hit like a warrior, but combos have wasted their money on many cryptocurrency businesses. Unprecedented performance in the 2018 pales market compared to its major gains in 2017.
Since 2013, the Chinese government has taken steps to regulate cryptocurrency, but nothing compared to what was imposed in 2017. (See this article for more details on the information provided by the Chinese government)
2017 was a picture year for the cryptocurrency market with all the interest and growth it achieved. Price fluctuations are forcing the central bank to take extra action, including blocking interest rates (ICOs) and the volatility of domestic cryptocurrency exchanges. Soon, China’s mining industry was forced to close, citing high power consumption. Exchanges with many factories have migrated overseas to evade regulations but still remain financially savings in China. However, they fail to escape the claws of the Chinese Dragon.
In a recent series led by the government to monitor and ban cryptocurrency trading among Chinese businesses, China has expanded the “Eagle Eye” to monitor foreign exchange cryptocurrencies. Companies and bank accounts that are suspected of being involved in foreign exchange transactions with other cryptocurrencies and other related transactions are attempted to reduce withdrawal limits and cool accounts. There have been rumors going on among the Chinese people about the dangerous things that should be followed on foreign platforms that allow trading between Chinese investors.
“As for whether there are any other ways of monitoring, we should wait for the order from the authorities.” Additional inquiries from the leader of China’s Public Information Network Security Supervision Agency under the Ministry of Public Security, 28th February
Imagine your child using his savings to use digital assets (in this case, cryptocurrency) that he has no way of guaranteeing authenticity and profitability. They can be lucky and get rich, or lose everything when the crypto bubble bursts. Now apply this to millions of Chinese citizens and we are talking about billions of Chinese Yuan.
The market is full of fraudulent and meaningless ICOs. (I hope you have heard the stories of people who send money to non-healing addresses and promise to double their money with unreasonable ICOs). Most unscrupulous advertisers are financially secure and do not care about the technology and background. The value of most cryptocurrencies is based on market sentiment. During the crypto-boom in 2017, take part in each ICO with a reputable advisor on the rise, a reliable team or a guaranteed fun and you are sure your money is 3X.
Strong misunderstandings and expertise behind it, combined with the proliferation of ICOs, are a risk factor. Members of the Central bank say that about 90% of ICOs are fraudulent or involved in money laundering. In my opinion, the Chinese government wants to ensure that monetary policy is ‘regulatory’ and not too large to fail among the Chinese people. China is doing the right thing in the way of self-defense, the world’s most regulated, even the most brutal and controversial. On the contrary, it could be the best move the country has made in recent years.
Will China make a final decision and make illegal cryptocurrency transactions? I doubt it because it is absurd to do so. Currently, financial institutions are prohibited from possessing any crypto currency while individuals are allowed but not allowed to do any business.
Cryptocurrency Government Exchange?
At the annual “Two Meetings” (Named because the two main parties – the National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPCC) both participated in a meeting ‰ held in the first week of March, leaders Gather to discuss recent issues and changes in legislation.
Wang Pengjie, a member of the NPCC held out hopes for a digital media management business and launched a blockchain and cryptocurrency education program in China. However, the desired platform may require a proven account to allow trading.
“With the enactment of legislation relating to the People’s Bank of China’s (PBoC) and China Securities Regulatory Commission (CSRC), a more efficient and effective monetary policy system can be used as a way for companies to raise funds (through ICOs) and investors to secure their assets. digital and fulfilling their appreciation ”Wang Pengjie’s writings at the two meetings.
Journey to the Blockchain world
Central governments and banks around the world have struggled to cope with the growing popularity of cryptocurrensets; but one thing is for sure, they have all received blockchain.
Despite the demise of cryptocurrency, the blockchain has been recognized and implemented in various categories. The Chinese government has been supporting blockchain experiments and implementing the technology. Instead, the People’s Bank of China (PBoC) has been using digital currency and made fun of other commercial banks in the country. It is not guaranteed whether digital currency can be exported to other countries and offer cryptocurrency features such as anonymity and volatility. It would not be surprising if it was just a Chinese Chinese Yuan as anonymity is the last thing China wants in their country. However, created as a substitute for the Chinese Yuan, digital currency must be complied with applicable laws and regulations.
Ambassador of the People’s Bank of China, Zhou Xiaochuan. Source: CNBC
“Many cryptocurrencies have seen temporary growth that could cause problems for consumers and retailers. We do not like (cryptocurrency) items that exploit the high level of intelligence that gives people the illusion of gaining overnight” Quotes from Zhou Xiaochuan Questions on Friday, 9 March.
In a press conference on Friday, March 9, the Governor of the People’s Bank of China, Zhou Xiaochuan criticized cryptocurrency projects using crypto-boom to make money and sell the oil market. He also said that the growth of digital currency was ‘inevitable’
In some areas, many Chinese cities are implementing blockchain solutions that promote growth in their area. Hangzhou, famous for being the capital of Alibaba, has said blockchain technology is one of the city’s most important priorities in 2018. The Chengdu city government has also been urged to build a joint venture to help implement blockchain technology in the city’s financial services.
Local corporations such as Tencent and Alibaba have also forged alliances with blockchain companies or launched private projects. Blockchain companies such as VeChain have also secured cooperation between Chinese companies in order to expand China.
All the instructions show that China is working towards a blockchain world. China is always open to emerging technologies such as mobile payments and Artificial Intelligence. From now on, there is no doubt that China will be the first country with a blockchain. Will we see the Chinese government step back and allow its citizens to resell? Alternatively, the market will mature and volatile but not in 2018.