{"id":104368,"date":"2021-05-27T14:30:52","date_gmt":"2021-05-27T06:30:52","guid":{"rendered":"https:\/\/www.mediaintel.asia\/?p=393051"},"modified":"2021-05-27T14:30:52","modified_gmt":"2021-05-27T06:30:52","slug":"what-does-beijings-new-crackdown-mean-for-cryptocurrency-in-china","status":"publish","type":"post","link":"https:\/\/www.chinalegalblog.com\/en\/2021\/05\/27\/what-does-beijings-new-crackdown-mean-for-cryptocurrency-in-china\/","title":{"rendered":"What does Beijing\u2019s new crackdown mean for cryptocurrency in China?"},"content":{"rendered":"
\"MediaIntel.Asia\"<\/a><\/div>\n

What does Beijing\u2019s new crackdown mean for cryptocurrency in China? What does Beijing\u2019s new crackdown mean for cryptocurrency in China?
\nBy Dashveenjit Kaur | 27 May, 2021 Beijing stepped up its efforts to crack down on Bitcoin mining and trading, sending the digital currency\u2019s price tumbling Finance industry associations direct their members, which include banks and online payment firms, not to offer any crypto-related services Crypto experts believe that it won\u2019t be a blow to bitcoin in the long run
\nIn China\u2019s latest attempt to clamp down on what was a burgeoning digital trading market, Beijing has ordered a halt to foreign virtual currency trading in bank commercial savings and transactions products. China last week cracked down on privately mined cryptocurrency that led to the market price for Bitcoin to fall off a cliff.
\nCompared with a previous China ban in 2017 , the new rules greatly expand the scope of prohibited services, after a new decision was made virtual currencies are not supported by any real value. Institutions, including banks and online payments channels, were told not to offer clients any service involving cryptocurrencies, such as registration, trading, clearing, and settlement. A State Council committee led by Vice Premier Liu He announced the efforts \u2013 the first time the council has targeted virtual currency mining, a big business in China that accounts for as much as 70% of the world\u2019s crypto supply.
\nIt has also thrown the full weight of the world\u2019s second-largest economy behind the People\u2019s Bank of China (PBOC) efforts to establish its Digital Currency\/Electronic Payment system (DCEP) \u2013 otherwise known as the Digital Yuan . The Chinese government isn\u2019t just worried about financial stability, either. A commentary piece in Xinhua News , the Communist Party\u2019s official media outlet, elaborated on the government\u2019s stance, voicing concerns about bitcoin\u2019s role in money laundering, drug trafficking, and smuggling. It also mentioned bitcoin\u2019s profligate energy use. Last week, China warned financial institutions not to participate in crypto-transactions or related services. What are the new measures?
\nThree financial industry associations directed their members, which include banks and online payment firms, not to offer any crypto-related services including account openings, registration, trading, clearing, settlement, and insurance, reiterating the 2017 ban .
\nPosted by the People\u2019s Bank of China (PBOC), the new ban also covers services that were not previously mentioned. It made clear that institutions must not accept virtual currencies, or use them as a means of payment and settlement. Nor can institutions provide exchange services between cryptocurrencies and the yuan or foreign currencies.
\nAdditionally, institutions were prohibited from providing cryptocurrency saving, trust, or pledging services and issuing crypto-related financial products. And virtual currencies must not be used as investment targets by trust and fund products. Banks and payment companies were also urged to step up monitoring of money flows involved in cryptocurrency trading, and coordinate more closely in identifying such risks. The impact of a cryptocurrency ban in China AFP | 8 April, 2021
\nAccording to crypto wallet Ballet, founder and CEO Bobby Lee said this move could all be leading to a boiling point where China\u2019s government actually takes stringent measures against the currency outright. However, he also outlined many of the infamous \u201cbans\u201d that the media has hit on over the years. It began in 2013 when the Chinese government recognized bitcoin as virtual property but banned it as a transaction medium. Since then, China has progressed to the point of regulators instituting trading restrictions and now, mining restrictions, Lee explained.
\n\u201cChina operates in a way where they rarely change the rules. Changing the rules can be very controversial. What they do is they change enforcement,\u201d said Lee. \u201cThat\u2019s why these verbal announcements are just a signal to the market, that they\u2019re going to step up the enforcement again.\u201d He continued to say that because bitcoin is a \u201cfree currency\u201d it\u2019s going to be \u201c constantly at odds \u201d with a capital-controlling society like China\u2019s.
\nOn the other hand, many Chinese bitcoin mines may consider moving out of China after the regulators re-emphasize plans to outlaw bitcoin-related payment services, although some mines in Southwest China\u2019s Sichuan Province are still operating, as usual, industry insiders told the Global Times .<\/p>\n

This data comes from MediaIntel.Asia's Media Intelligence and Media Monitoring Platform<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

What does Beijing\u2019s new crackdown mean for cryptocurrency in China? What does Beijing\u2019s new crackdown mean for cryptocurrency in China?
\nBy Dashveenjit Kaur | 27 May, 2021 Beijing stepped up its efforts to crack down on Bitcoin mining and trading,…<\/p>\n","protected":false},"author":253,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[669,65,144,1527,586,671,137,477,194,52,472,43,445],"tags":[1768,5567,7705,3686,6601,3472,10321,10333,10335,3312,6823,10488,2992,10392],"class_list":["post-104368","post","type-post","status-publish","format-standard","hentry","category-bank","category-beijing","category-china","category-currency","category-economy","category-finance","category-fraud","category-investment","category-news-chinese-law","category-online-payment","category-renminbi","category-state-council","category-xinhua","tag-bank-of-china","tag-bitcoin","tag-blockchain","tag-boycott","tag-china-technology","tag-chinese","tag-communist","tag-crypto","tag-e-cny","tag-electronics","tag-fintech","tag-liu-he","tag-sichuan","tag-signal"],"_links":{"self":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/104368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/users\/253"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/comments?post=104368"}],"version-history":[{"count":1,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/104368\/revisions"}],"predecessor-version":[{"id":104371,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/104368\/revisions\/104371"}],"wp:attachment":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/media?parent=104368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/categories?post=104368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/tags?post=104368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}