Seeing how the entire crypto market is down by 50% in terms of value, it might seem like things couldn’t get worse than this. Well, we couldn’t be more wrong since China just announced that it will block all foreign crypto exchanges from now on.
This information came to light yesterday (February 5th) and it confirms that China blocked offshore cryptocurrency exchanges and ICO (initial coin offerings) websites.
China Regulates the Crypto Market
The first thing we need to mention is that China is the first government to try and impose regulations on the crypto market. It all started in September of 2017 when China decided to ban ICOs because the People’s Bank of China (PBoC) didn’t like the idea that ICOs are not regulated by any higher authority.
The People’s Bank of China recently confirmed that regulators in China are voicing their dissatisfaction towards the way that the crypto market is being dealt with.
This is believed to be the main reason why China started imposing restrictions on domestic crypto exchanges and mining. The only statement that the People’s Bank of China made regarding this latest ban is that its designed to counter “financial risks”.
Chinese Lawmakers Counter Contingency Moves from Traders
The block on all foreign crypto exchanges is already taking its toll on the market since Cointelegraph announced that its ads related to cryptocurrencies have been deleted from all Chinese domestic websites. However, things don’t end there because lawmakers made public their desire to counter contingency moves from traders.
“To prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs. ICOs and virtual currency trading did not completely withdraw from China following the official ban. Overseas transactions and regulatory evasion have resumed. Risks are still there, fueled by illegal issuance and even fraud and pyramid selling.”