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


US and South Korea seek extradition of Luna founder Do Kwon

Both US and South Korean officials are seeking to extradite Terraform Labs CEO Do Kwon, just hours after he was arrested in Montenegro.

Retail FX

Pepperstone UK doubles profit, client assets in 2022

The London-based entity of Australian FX broker Pepperstone has reported its financials for the fiscal year ending June 30, 2022. The group had outperformed the last year’s flat performance, having doubled revenues and boosted the broker’s bottom line and shareholders’ fortunes.

Institutional FX

CLS FX volume rises to just shy of $2 trillion in February

Foreign exchange settlement provider, CLS Group saw strong volumes in February 2023 as the banking crisis continues to weigh on a world economy that’s yet to fully recover from the Russia-Ukraine war’s shocks.

Digital Assets

Binance restores trading after 2-hour outage

Binance suffered a breakdown on its trading engine that lasted for about two hours, but the premier cryptocurrency exchange finally managed to restore normal operations at around 14:00 UTC.

Digital Assets

Tether earns $700 million in Q1, taking excess reserves to $1.6 billion

Tether chief technology officer Paolo Ardoino said the world’s largest stablecoin issuer expects to earn more than $700 million in the January-Mach quarter, which will be added to the reserve backing its stablecoin (USDT).

Digital Assets

Narwhal Finance Secures $1M in Seed Funding Led by Animoca Ventures

Narwhal Finance received strong support from Animoca Ventures and angel investors in a $1 million seed funding round, reinforcing the company’s vision of providing an accessible platform to all.


SteelEye tries ChatGPT for market surveillance

This capability can be used as a starting point for initiating a surveillance investigation and to standardize workflow processes to boost the throughput and consistency of cases. It is also useful when analyzing communications in foreign languages, as the system returns the above insights in English regardless of the languages being used.

Industry News

SEC charges ex-Morgan Stanley advisor of NBA players after $13m fraud

Darryl Matthew Cohen was arrested this week and is facing three different federal counts of fraud, which could amount to 20 years in prison if convicted, besides the SEC complaint. 

Industry News

AWS FinTech Africa Accelerator launched, applications until April 27, 2023

Founders will be offered tech resources, expert guidance, and a global network of industry leaders, technologists, entrepreneurs, investors, associations, and partners, in order to build their fintech products.