China is reportedly escalating the crackdown on cryptocurrency trading and particularly online platforms and mobile apps that offer exchange-like services.
China is reportedly scrutinizing cryptocurrency trading and particularly online platforms and mobile apps that offer exchange-like services.
Sources cited by Bloomberg Technology say that China is likely to escalate its crackdown on cryptocurrency trading. Last year, the Chinese government banned cryptocurrency exchanges, and now it is supposedly planning a crackdown on alternative platforms that enable cryptocurrency trading. The People`s Bank of China declined to comment on the subject.
Before that the Chinese market was among the most active cryptocurrency trading markets, hosting some of the biggest bitcoin miners. Now it appears that miners could move overseas, according to Bloomberg Technology. For example, Bitmain that runs the country`s two largest bitcoin-mining organizations is launching new headquarters in Singapore. Also, the company is working in the USA and Canada, as Wu Jihan, the company`s co-founder, said in an interview.
Governments around the world are increasingly wary of cryptocurrency trading and the possible speculations that may arise. The authorities fear that the cryptocurrency craze can lead to more money laundering and tax evasion practices.
As we wrote previously, the South Korean government has publicly announced its plans to ban cryptocurrency trading in the country. Justice minister Park Sang-ki stated that the authorities are working to criminalize trading with digital assets on domestic exchanges. Indonesia`s central bank has also issued a warning against virtual currencies while advising against financial trading with them. It is to be seen how this will affect the price of cryptocurrencies like Bitcoin and Ethereum.