China recently announced another crypto crackdown, mostly targeting businesses that provide crypto-related services, such as exchanges.
28 November 2019 | AtoZMarkets – Following a series of warnings from Chinese regulators as many as five local exchanges have shuttered their digital doors according to the SCMP. The central bank and financial watchdogs have ramped up their anti-crypto rhetoric following a big bout of FOMO when president Xi endorsed blockchain.
China’s crypto clampdown has already started and at least 5 exchanges are closing shop
The report added that the Chinese social media platform Weibo suspended accounts operated by Binance and Tron. The report further said that this latest crypto crackdown had become the largest crackdown since Sep 2017. In that year, the Chinese government ordered an end of open trading.
Fiat on-ramps have been squeezed but the people have their ways around the regime censors and blockades and turned to over the counter (OTC) trading to get their crypto fix. The report added that even these options are now being quashed by the heavy hand of Beijing.
Several smaller local exchanges including Bitsoda, Akdex, Biss, Idax, and Btuex have reportedly closed down or stopped serving Chinese nationals. Katie Talati, head of research at Los Angeles based crypto asset manager Arca commented;
“It appears that, like everything else within their borders, China feels it needs to have tighter controls on the crypto market including exchanges, miners and asset issuers. I do believe, however, they are moving in a similar direction as Japan and other jurisdictions that have tight and clear regulations for crypto businesses.”