China to Monitor and Ban 124 Exchanges Currently Available to Chinese Citizens
Following the ban on local cryptocurrency exchanges, authorities in China are now set to prohibiting access 124 overseas cryptocurrency exchanges.
Cryptocurrency trading has been something that the Chinese government has been against for some time now. Following the ban on local cryptocurrency exchanges, authorities in China are now set to prohibiting access 124 overseas cryptocurrency exchanges.
These overseas exchanges have their services available to Chinese citizens despite the ban on trading cryptocurrencies on exchanges passed by authorities last year.
Chinese authorities double down in 24 hours
Chinese authorities have resumed their crusade against cryptocurrency trading. Barely 24 hours after Beijing banned cryptocurrency-related events and news outlets in the regions, authorities in the country are now looking to block access to 124 overseas cryptocurrency exchanges.
Local financial news outlet Shanghai Securities Times reported that the China National Fintech Risk Rectification Office is set to implement clean-up measures to maintain financial order and social stability.
Some of those measures will include active monitoring in real time and block access. Those close to the organization believe that the measures will consolidate the results of special rectification work and prevent financial risks
The Chinese government established the fintech risk rectification office back in 2016 as it looks to protect its citizens from the risks of peer-to-peer lending and cryptocurrency trading.
Authorities to shut down crypto- and blockchain-focused accounts on WeChat
The report further revealed that the authorities will immediately shutdown crypto- and blockchain-focused accounts in the Chinese payments and messaging client WeChat. These accounts were accused of crypto trading and initial coin offerings (ICOs).
Furthermore, the risk rectification office has been in contact with third-party payment providers to monitor and shut down accounts that were suspected to be conducting cryptocurrency transactions.
Authorities in China have been fighting ICOs and cryptocurrency trading. The Chinese government last year made it illegal for its citizens to trade cryptocurrencies unless they operate offshore.
The ban on cryptocurrency trading by the Chinese government was initiated last year as they were strictly prohibiting investors from storing wealth in alternative stores of value.
The ban on cryptocurrency trading in the country led to the exit of several exchanges, with most of them moving to neighboring regions like Hong Kong, Singapore, and Thailand.
According to a report by a local news outlet, Shanghai Securities Times, a total of 88 local cryptocurrency exchanges and 85 ICO platforms have been forced out of the country. The Bitcoin-for-yuan trading has also plummeted from 90% of the global market to less than 5%.
Chaoyang District bans crypto-related events
On August 17, Chaoyang District issued a directive to businesses such as office buildings, hotels, and shopping malls that they shouldn’t host an event that promotes cryptocurrencies.
The ban, however, isn’t expected to affect the wider cryptocurrency market.