China Intensfies Crypto Ban
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China is ramping up its cryptocurrency prohibition efforts again with a directive issued by ten institutions last Friday covering a range of activities including offshore transactions and hiring.
All crypto transactions in China are banned, according to authorities in a statement that highlighted examples such as Tether, Bitcoin and Ether.
Banned crypto-related activities extend to services provided by offshore exchanges to domestic residents.
The statement was issued by the People’s Bank of China alongside nine other institutions that included the supreme court, the police and the internet and securities watchdogs.
The nation’s top economic planning agency asking local officials to investigate abnormal power usage, call in loans and eliminate preferential tax treatment to accelerate the shutdown of mining operations.
In addition, crypto platforms will also be forbidden to hire locally for roles like marketing, tech and payment, limiting their ability to serve Chinese customers.
The latest efforts are part of an ongoing crackdown that traces back to September 2017 when authorities first banned initial coin offerings in China.
Questions & Answers
Q.Which government bodies are behind this intensified ban on cryptocurrency?
Which government bodies are behind this intensified ban on cryptocurrency?
The People’s Bank of China issued the directive alongside nine other institutions. These included the supreme court, the police, and internet and securities watchdogs, demonstrating broad governmental consensus on the prohibition.
Q.What specific cryptocurrency activities are now covered by the ban in China?
What specific cryptocurrency activities are now covered by the ban in China?
All crypto transactions are banned, including offshore transactions and services provided by offshore exchanges to domestic residents. The directive also forbids crypto platforms from hiring local staff for roles like marketing, tech, and payment.
Q.How are local officials being instructed to deal with cryptocurrency mining operations?
How are local officials being instructed to deal with cryptocurrency mining operations?
The nation's top economic planning agency has asked local officials to investigate abnormal power usage. They are also instructed to call in loans and eliminate preferential tax treatment to accelerate the shutdown of mining operations.
Q.When did China's initial efforts to ban cryptocurrency activities begin?
When did China's initial efforts to ban cryptocurrency activities begin?
This latest effort is part of an ongoing crackdown that started in September 2017. At that time, authorities first banned initial coin offerings across China, establishing a precedent for the current intensification.
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