China bans all crypto transactions ‘again’

Karthik Subramanian

The People’ Bank of China (PBOC), which is the central bank of China, has said that all crypto-related transactions in China are illegal and has once again reiterated its resolve to crack down on the crypto market.

China has attempted to do this many times over the last few years with varying degrees of success and this crackdown this year was something that was quite expected as it had asked the bitcoin miners in China to wind up their operations at the beginning of the year. The fact that they were asked to shut shop and the crackdown that followed, to ensure that the miners did indeed shut down, showed that China was coming for the crypto industry sooner than later. In recent months, it has been making sweeping changes across all social and economic activities and the crypto industry has been one of the industries that regulators around the world have looked down upon over the last few years.

In today’s order, the PBOC said that all services that offer trading, order matching, token issuance, and derivatives of virtual currencies are strictly prohibited and even foreign crypto exchanges are no longer allowed to offer their services within China. The bank has also added that it has improved its monitoring infrastructure to track all such transactions and has also said that employees of such crypto exchanges would be investigated. This news has come amidst reports that China is working on its version of digital currency. The prices of Bitcoin and other major cryptos like Ethereum sank on the news of this crackdown.

The regulators in different countries have been adopting different approaches to cryptocurrencies. While regulators like the SEC in the USA have adopted a very stern stance against cryptos and have been viewing crypto exchanges and crypto-related products with suspicion, there are other countries where the regulators have adopted a much softer stance. The most worrying aspect as far as the regulators are concerned is the effect that these cryptos would have on the overall economy as there are no ways to control or track the movement of the funds through cryptos.

Strict regulations and tracking of cryptos need to be set up to ensure that the cryptos are not used to fund illegal activities but these are things that require a lot of time and effort and even after all the effort, it may not be possible to regulate all aspects of crypto. This has forced regulators around the world to adopt a generally tough stance against cryptocurrencies.

Read this next

Industry News

Celsius $750m insurance claims are fraud, says lawyer seeking EU crypto superfund

“It is an intentional deception in aid of a billion-dollar securities offering.”

Institutional FX

DGCX brokers authorized to provide derivatives trading and clearing services

The DFM is looking to provide multiple asset classes such as; equities, ETFs, equities’ futures, crude oil futures, etc. to meet the growing demand from its diversified base of local and international investors.

Digital Assets

EQONEX leaves “crowded crypto exchange space” amid crypto winter

“The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators. We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term.”

Digital Assets

FTX and Paradigm partner for spreads trading: lower risk, lower fees

“This structured spread trading product is the first that will enable crypto investors to utilize cash and carry trades through FTX and Paradigm.”

Industry News

SEC uncovers online retail brokerage hacking scheme

Fraudsters were able to sell their holdings at artificially high prices and reap more than $1 million in illicit proceeds, the SEC alleged. 

Executive Moves

Cornerstone FS taps James Hickman as CEO

“I see great potential in the business from its proprietary technology to its regulatory permissions. It is already delivering an exceptional service to its SME customers and the scalable platform is ideally positioned to add further product capability.”

Retail FX

FCA warns of Lite Forex Pro as crackdown on clone scams continues

The UK Financial Conduct Authority has put out a press release that warns about a new ‘clone firm’ investment scam impersonating LiteForex‎, which rebranded last year as LiteFinance.

Digital Assets

Novogratz’s Galaxy Digital backs out of $1.2 billion deal to buy BitGo

Crypto merchant bank Galaxy Digital would not move forward with its bid to buy digital-asset custodian BitGo.

Executive Moves

OctaFX elevates Nikolas Charalampous to executive director role

OctaFX has promoted its head of dealing, Nikolas Charalampous, to the role of executive director, which saw the expansion of his day-to-day responsibilities and oversight.