Chinese crypto crackdown still in effect, regulators warn

The last few months have seen a number of blockchain-friendly headlines from China, as the country finally decided to open up and push the adoption of blockchain technology. More than that, the Chinese central bank is even developing its own digital currency, which will be the world’s first fully operational CBDC. However, despite the positive stance towards blockchain and government-controlled crypto, real cryptos are still not welcome in China. In fact, the country’s regulator has recently warned China’s citizens that the crypto crackdown is still in effect. The crackdown from 2017 was sudden and harsh. China banned ICOs completely, all major exchanges left the country or had to close down shop, and crypto trading became a restricted activity. For a time, the government even considered banning crypto mining, although it changed its mind about that, eventually.

Nothing has changed, despite blockchain adoption

Then came 2019, with an increase of crypto prices, and the government’s eventual friendly stance towards blockchain. As a result, many felt hope that China might invite cryptocurrencies and crypto businesses back. Some even started testing crypto waters again, which caused Beijing’s wrath as a result. Now, China’s central bank joined ranks with the country’s regulators — Beijing Local Financial Supervision and Administration Bureau, Beijing Securities Regulatory Bureau, and Beijing Banking and Insurance Regulatory Bureau — to issue a new warning — cryptos are still not welcome, and anyone who deals with them will face the consequences. The announcement also shows that regulators believe that a number of firms in Mainland China made serious ICO-related violations and that they would be punished for providing crypto services. The existing anti-crypto laws still apply, and the regulators called on the public to report any crypto offenders they learn of.