Why is China Adamantly Sticking to its Anti Cryptocurrency Stance?

BTC Wires: China’s government is planning to block more than 100 international cryptocurrency exchanges from offering any kind of trading services to the residents of the country. That is why Chinese regulatory bodies are moving in the direction of hostility towards cryptocurrency, more than ever before.

According to the Shanghai Securities Times, over 124 trading platforms which process international IP addresses but available to domestic residents to invest has been identified by the China National Fintech Risk Rectification Office (CNFRRO). CNFRRO is a government organization which was established to safeguard against financial risks related to various issues such as peer to peer lending at any capacity and cryptocurrency trading.

According to the report, CNFRRO is ramping up its efforts in policing and monitoring the commercial use of cryptocurrencies. CNFRRO is also blocking internet access to these trading platforms. In China, several cryptocurrency exchanges such as Bitfinex, Binance, and OKEx are unavailable for trading because of the blocked internet access.

China’s central bank, the People’s Bank of China passed a rule in September 2017 and placed a widespread ban on Initial Coin Offerings (ICOs). The step will result in the ban of cryptocurrency trading platforms which are operating in China. Because of the ban, most of the major exchanges have moved to other locations such as the US, Europe, and Malta.

According to the report, very soon domestic websites will be shut down and trading accounts which are operating on the messaging app WeChat will be banned especially if they are found to be offering ICO or crypto trading services. Because of the step, several Chinese cryptocurrency media outlets were blocked on WeChat. The report also states that third-party vendors who are involved in handling cryptocurrency transactions will also be scrutinized.