[2018-02-05] China to Ban & Block Foreign Cryptocurrency Trading Platforms, ICOs

[moriskarlov]

China is reportedly aiming to block all websites, both domestic and foreign, related to cryptocurrency trading and initial coin offerings (ICOs) in what could be the country’s final crackdown on the industry.

According to a Sunday report by the Financial News, a newspaper run by China’s central bank, authorities are reportedly lining up a number of regulatory measures to further a crackdown on the cryptocurrency industry. The People’s Bank of China (PBoC) began ramping up its scrutiny against domestic exchanges in early 2017.

As reported by state-funded website ThePaper.cn, an excerpt from the article by PBoC-affiliated article read:

“To prevent and mitigate financial risks, authorities will take regulatory measures against ICOs and virtual currency exchanges inside and outside the country, including the banning of relevant businesses, banning and disposing of domestic and foreign exchange virtual currency websites.”

China first issued the ‘Notice’ of a sweeping ban on initial coin offerings on  September 4, quickly followed by restrictions to effectively shutter domestic cryptocurrency exchanges, mandating them to completely stop trading activities by September 30.

“After the clean-up and remediation, the trading volume of virtual currencies denominated in renminbi (RMB) dropped from over 90% of global trading volume to less than 1% at one time, greatly reducing the risk levels,” the report said.

Beijing’s ongoing move to ban and censor access to domestic cryptocurrency businesses and international exchange platforms respectively comes within a week of China’s internet finance association learning that previous measures to eradicate investments into cryptocurrencies have failed. The authority subsequently issued a public notice warning investors to be wary of risks in overseas cryptocurrency trading and participation in initial coin offerings (ICOs).

According to yesterday’s report, China’s central bank has gone a step further in effectively constructing a firewall to keep domestic traders and investors from using websites of international cryptocurrency exchanges. Implementing the regulatory blockade is done with the ‘spirit of the Notice’, the publication added, confirming its findings that domestic investors had turned to overseas platforms after the local ban.

Pointing to Japan and Hong Kong as destinations for Chinese cryptocurrency traders, the report said:

“Overseas transactions, regulatory evasion, virtual currency trading and ICO activities have resurgence trend. Take some overseas ICOs with domestic participation as an example. The various risks and problems identified in the “Notice” still exist, including illegal issuance, unrealistic items, fraud and even pyramid selling, and it may be even more difficult for investors to recover the losses.”

https://www.ccn.com/china-ban-block-cryptocurrency-trading-icos-abroad-report/

[FrueGreads]

They seem to be trying to take advantage of the recent FUD in the crypto market, and from a "crypto hater" point of view, this is the best time for them to release those news. No wonder bitcoin price is falling deeply, since every week we see some ban or tight regulation news all over the place. Some are true, others not so much, but it's definitely being a great way to keep the price down, and generate some panic sell.

I wouldn't be surprised if we see some news related to China banning mining as well, but I guess that miners are already preparing to move abroad for a while now, so although it will generate more FUD if it ever comes true, I don't think it will have major implications to the technology and the network itself.
From an investors point of view, this is the thing I always ask myself when I see FUD news. How does this affect bitcoin development? Normally it doesn't and that's why I keep holding.

The good news are, that they will run out of FUD news eventually, and after that we will probably see LN coming up, and it will be hard to stop BTC by then.

[BellaBitBit]

They seem to be trying to take advantage of the recent FUD in the crypto market, and from a "crypto hater" point of view, this is the best time for them to release those news. No wonder bitcoin price is falling deeply, since every week we see some ban or tight regulation news all over the place. Some are true, others not so much, but it's definitely being a great way to keep the price down, and generate some panic sell.

I wouldn't be surprised if we see some news related to China banning mining as well, but I guess that miners are already preparing to move abroad for a while now, so although it will generate more FUD if it ever comes true, I don't think it will have major implications to the technology and the network itself.
From an investors point of view, this is the thing I always ask myself when I see FUD news. How does this affect bitcoin development? Normally it doesn't and that's why I keep holding.

The good news are, that they will run out of FUD news eventually, and after that we will probably see LN coming up, and it will be hard to stop BTC by then.

Totally agree with all of the above.  My first thought is they are enhancing the dip they know is coming from the chart to buy more and keep their people from taking profits, they certainly cannot like their citizens becoming independently wealthy outside of their financial system. I personally am enjoying this downward motion on alts and btc.  The bitcoin community has been through many bans and those that believe will remain calm.

[ulhaq]

According to yesterday’s report, China’s central bank has gone a step further in effectively constructing a firewall to keep domestic traders and investors from using websites of international cryptocurrency exchanges. Implementing the regulatory blockade is done with the ‘spirit of the Notice’, the publication added, confirming its findings that domestic investors had turned to overseas platforms after the local ban.

Will China's firewall be successful? This is not going to affect peer to peer and decentralized exchanges, right?

[vit05]

People still use torrent to download movies in China. They still download programs for their cellphones, music. What will become increasingly difficult will occur the same as occurs in countries such as Japan and Korea. But with time and the clear demonstration that the future is in the crypts, it is quite unlikely to imagine that this banishment will be forever.

[Aikidoka]

Nothing will remain the same. China will come to a realization that what it has done was not smart and purely stupid. Banning cryptocurrencies because it seems to be a threat to it. China is very populated and there are millions of unemployed people.

Why not let them have online jobs since you cannot provide them with decent real life ones? People will continue to complain and they surely will revolt because they have nothing in their pockets to buy something to eat.

[1Referee]

It's nothing really new or unexpected. If China is planning to crack down on everything crypto related within its own country, they will obviously also focus on everything outside of China accessible via the internet. China at all cost is looking to prevent outflow of capital, and to achieve that, they'll just overuse the banhammer. It also shouldn't be new or unexpected considering the timing of when all these articles and statements are being released. It's a global attempt to get the price to tank deeper and deeper, and thus far it seems to work. Bitstamp and GDAX both couldn't hold their price above the $6000 level, while BitTether on the other hand managed to hold the $6000 level.

[Krishniche]

China has yet again managed to affect the global crypto market because of its policies that curb the use of cryptocurrency in any form whatsoever be it through the trading on foreign and domestic crypto exchanges, ICOs. I wonder when will this black season surmounting the crypto universe fade away. I hope it fades soon.

[Lucius]

Nothing new from China but only bad news,I think it is clear to everyone now that this country is become the greatest enemy of cryptocurrency and I think this is not all we can expect from them.Even if they manage to take all the measures they want to implement,I think they will continue to fight against crypto even outside of China.

Considering how much power and money they have it's possible that they will trying to sabotage even foreign exchanges and affect the price in the future.

[12tribes]

Yeah, you are right. Read that too in the news and heard that JP Morgan Chase will no longer support the use of credit cards for crypto purchase.

[Snaic]

Now that bitcoin has fallen so low, these prohibitions of crypto-currency in China will not particularly affect it. It would be worse if such information would have come about when bitcoin began to actively grow in value. And now one more negative information, one less, does not matter much. It is alarming just some kind of coherence in the attack on bitcoin and the desire to compromise it and drive it deeper into the price bottom. It seems that there is a conspiracy against bitcoin.

[orions.belt19]

It's nothing really new or unexpected. If China is planning to crack down on everything crypto related within its own country, they will obviously also focus on everything outside of China accessible via the internet. China at all cost is looking to prevent outflow of capital, and to achieve that, they'll just overuse the banhammer. It also shouldn't be new or unexpected considering the timing of when all these articles and statements are being released. It's a global attempt to get the price to tank deeper and deeper, and thus far it seems to work. Bitstamp and GDAX both couldn't hold their price above the $6000 level, while BitTether on the other hand managed to hold the $6000 level.

I have to agree. China has been making numerous efforts to get rid of crypto so it's no surprise that a ban like this was announced. China already blocked Google and Facebook, so it goes to show that their government is really selective and controlling. Right after they made a ban on trading platforms, the people of China were still able to go around it and find ways to trade. Since there are VPNs, people can still get a way with it. Also, this quickly followed Facebook's ban on ICO promotions so it seems that China wanted to do the same.