The People’s Bank of China has declared that it has ‘safely closed down’ all ICOs and cryptocurrency exchanges in the country. The authorities have now further intensified their crackdown on illegal fundraising activities.
China has been in news for taking various steps to curb cryptocurrency trading, and ultimately eliminating the crypto trading industry from the country. Now, the Chinese financial authorities have intensified their crackdown on illegal fundraising activities.
Recently, country’s financial regulators in a news conference in Beijing stated that in order to curb illegal fundraising in China, they will keep a close watch on interest rates charged by companies and financial firms in the private sector.
According to Reuters, the People’s Bank of China, the central bank of the country, has declared that it had ‘safely closed down’ all initial coin offering (ICO) platforms and cryptocurrency exchanges in the country. Moreover, the bank says it will keep an eye to prevent further risks from financing over the internet.
China once accounted for over 90% of crypto trading but in January 2017, when bitcoin reached the USD $1000 mark, it began tightening its grip over cryptocurrencies. Initially, on September 4, 2017, Chinese authorities imposed a blanket ban on all ICO platforms in the country, which was followed by a crackdown on domestic cryptocurrency exchanges.
However, despite all the efforts to curb crypto trading, research from China’s internet finance association found out that many traders in China have turned to foreign exchanges and ICOs to participate in crypto trading. To tackle this issue, now Chinese authorities are considering blocking all websites, both domestic and foreign, related to cryptocurrency trading and ICOs, reported a news publication affiliated with the People’s Bank of China (PBOC).
China continues its crypto crackdown as even though the country cannot completely eradicate it, authorities continue to keep a watch to curb crypto trading. The government has even gone to the extent of checking the bank accounts of domestic crypto traders in this regard. The authorities have warned traders to even freeze their assets and block them from the domestic financial system.
It is to be noted that in 2016 a Chinese state-run news agency reported financial scams involving illegal fundraising of USD $36.5 billion (251.1 billion yuan) in China along with more than 5,000 new criminal cases.
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