China has a way of blocking foreign sites that it does not want to affiliate with by using what’s called the Great Firewall of China. The program has tracked down its latest prey. It is cryptocurrency. At the beginning of this week, Financial News has stated that the People’s Bank of China is busy compiling a list of regulations that it plans to implement against cryptocurrency trading. Some of the actions that will be taken include intervening in domestic and foreign websites that are involved in cryptocurrency trading, as reported by the South China Morning Post.
The bank defended its actions by stating that its intention to engage in the matter of expunging onshore and offshore mediums whereby traders are involved in cryptocurrency or initial coin offerings, is to protect civilians from financial risk. The article in the Financial News stated that overseas transactions and regulatory evasions have resumed.
The extension of the Great Firewall to cryptocurrency sites is a precautionary measure to ensure that the cryptocurrency industry is brought to an abrupt halt as Beijing perceives it to be a risky investment. At the beginning of last year, China’s Ministry of Industry and Information stipulated that it was going to carry out a process, which would last for 14 months, to get rid of all the unwanted websites, including any related cryptocurrency trading and online gambling.
What Has China Done?
China did stir up the cryptocurrency market last year when it prevented the withdrawals of Bitcoin on the key digital currency exchanges. The government said that the reason it engaged in such an activity was to hinder the possibility of any illegal transactions. People’s Bank of China was the driving factor in the government’s interference as the bank appealed to cryptocurrency operators to improve its money-laundering preventive measures.
The cryptocurrency operators heard what the People’s Bank of China was advising them to do and followed the advice, yet the Beijing officials did not hesitate to bar the cryptocurrency exchanges in the country, as well as the initial coin offerings last year. As a result of the ban, the Chinese cryptocurrency holders had to move their investments to international markets.
The article stated that the trading of the cryptocurrency was not totally banned, and following the ban, many traders had to seek exchanges in the foreign market to engage in cryptocurrency trading. Advertisements about cryptocurrency have not surfaced on websites after the bans.