China’s central bank has issued a fresh public notice, warning citizens on the dangers of cryptocurrency and ICO investing. Despite government crackdowns culminating within a blanket ban on all ICOs, the People’s Bank of China admits that cryptocurrency trading activity among domestic investors using offshore exchanges carries on thrive. The PBoC announced in today’s statement that it’s going to continue to strengthen its attempted restriction on all illicit trading. Arguing that restrictions are to your public good, the central bank highlights that Chinese investors were effectively saved from the cryptocurrency bubble recording thanks to government intervention.
“[T]he global share of domestic virtual currency transactions has dropped in the initial 90% to under 5%, effectively avoiding the virtual currency bubble because of skyrocketing global virtual currency prices during the second half of in 2009 in China’s financial market. The outcome has been highly identified by the community,” the population notice reads.
As reported through South China Morning Post, national authorities blocked over 120 offshore cryptocurrency exchanges in August. Over 88 cryptocurrency exchanges and 85 ICO projects happen to have been shut down in China since government crackdowns began last September. Determined by Shanghai Securities News, the yuan-Bitcoin trading pair has dropped from 90 to five percent of the world’s total Bitcoin trades.
Government authorities at the moment are aimed at clamping regarding trading through the offshore exchanges being exercised to circumvent the domestic blockade. The PBoC states it will:
“closely monitor ICOs along with its multiple variants, strengthen research and judgement, proactively fight and concerns…In addition, [the internet authority] in addition has strengthened the disposal of domestic ICO and virtual currency transaction related websites, public numbers, social networking etc., and permanently blocked some public numbers suspected of releasing ICO and virtual foreign exchange hype information.”
The PBoC also emphasized added efforts to “clean-up” payment channels and strengthen monitoring and inspection mechanisms. Everyone notice states that 3,000 accounts are closed as a result of these efforts. A top level view for silencing crypto “hype” material circling social media platforms was given.
In a trial to comply, large tech companies which include Baidu, Alipay’s Alibaba and WeChat’s Tencent have started to double documented on their efforts to evaluate and ban accounts suspected of starting promotion of crypto and blockchain related activities.
The PBoC concluded Tuesday’s warning by stressing that domestic residents are required to report undetected ICO operations or variants of ICOs “suspected [of] criminality or illegal crimes.”