Over past some years, cryptocurrency market in China took the series of some heavy punches from the government. Market took hits just like a warrior, and combos have taken the toll in a lot of cryptocurrency investors. Market lackluster performance of 2018 pales compared to the stellar 1000 percent gains in year 2017.
What actually has happened?
From 2013, the government of China has taken measures of regulating cryptocurrency; however nothing can be compared to things enforced in year 2017. So, 2017 was the banner year for cryptocurrency market with most of the growth and attention it has attained. Extreme volatility in price forced Central bank of adopting extreme measures, which includes ban of the initial coin offerings and clampdowns on the domestic cryptocurrency exchanges and get right crypto news. Later on, Chinese mining factories were forced to shut down, citing extreme electricity consumption. Several factories and exchanges have relocated abroad to avoid the regulations and remained accessible to the Chinese investors. Pointless to say, they fail to escape any claws of Chinese Dragon.
Ban and more
Looking at series of the government-led efforts of monitoring or banning crypto currency trade among the Chinese investors, the government has extended its base to monitor the foreign cryptocurrency exchanges. Bank accounts and companies suspected of doing transactions with the foreign crypto-exchanges or any related activities will be subject of measures from restricting the withdrawal limits or freezing of the accounts. There are ongoing rumors among Chinese community of extreme measures being enforced on the foreign platforms that enable trading among the Chinese investors.
Central banks and governments across the work have struggled hard to grapple with an increasing popularity of the cryptocurrencies; however one thing is for sure, all have now embraced blockchain. In spite of cryptocurrency crackdown, the blockchain is gaining huge popularity and acceptance in different levels. Chinese government are supporting the blockchain initiatives as well as embracing this technology. Actually fact, People’s Bank in China is working on the digital currency and has conducted some mock transactions with other country’s commercial banks. Still it is unconfirmed if digital currency can be decentralized and give features of the cryptocurrency such immutability and anonymity. It will not come as a big surprise in case it turns out being a digital Yuan given that the anonymity is a last thing that the government of China wants in the country.