Wednesday, 20 June, 2018

China is blocking foreign cryptocurrency trading platforms

China is blocking foreign cryptocurrency trading platforms China is blocking foreign cryptocurrency trading platforms
Melinda Barton | 06 February, 2018, 16:17

Bitcoin's price continued to drop on Monday, sliding below the $7 mark - its lowest level in more than two months.

With the announcement that it plans to block all websites related to cryptocurrency trading and initial coin offerings - including foreign platforms - Beijing has left no one in any doubt of its position on the highly volatile commodity.

The Leading Group of Internet Financial Risks Remediation - China's top internet-finance regulator - issues a notice asking local governments to "actively guide" bitcoin-mining operations to "orderly" quit the business.

The cryptocurrency slide comes as Chinese authorities launch their latest crackdown on cryptos.

The cryptoheatmap is, in a word, red.

The regulations put in place a year ago were meant to put an end to Bitcoin mining as well as exchanges.

The Financial News article acknowledged that recent attempts to stamp out digital currencies by shutting down domestic exchanges had failed to completely eradicate trading.

China started shutting down domestic exchanges in September past year, but that wasn't enough to curb people from finding offshore platforms to carry out cryptocurrency trading.

If the reported ban does come into play, it could have a massive effect on the cryptocurrency market as it will effectively stop any traders in China from easily access their funds. "Overseas transactions and regulatory evasion have resumed... risks are still there, fueled by illegal issuance, and even fraud and pyramid selling".

China's official Xinhua news agency quoted the PBOC on Monday afternoon as saying it would tighten regulations on domestic investors' participation in overseas transactions of ICOs and virtual currencies, as risks are still high in the sector.

In addition to banning foreign digi-dosh exchanges, China is also said to have banned ads from cryptocurrency websites from appearing in search results in both Baidu and Weibo.

The cryptocurrency had slipped below $8,000 last week.

Banks on the mainland have informed state media they will "step up measures" to eliminate citizens trading in cryptocurrencies using overseas websites, with the help of the Middle Kingdom's Great Firewall, in addition to the previous bans on domestic crypto-coin-trading websites and services. China has blocked the websites that offer cryptocurrency trading and ICO websites.

"In a long term view, (bitcoin) is still climbing".