China is once again getting worried about the expansion of cryptocurrencies. Regulators have requested authorities to prevent the use of digital currencies by individuals in the country. This is according to a recently released announcement by the China Securities Regulatory Commission (CSRC). In this report, they talk about the risks related to cryptocurrencies and their influence in the financial market.
Chinese Authorities Worried About Crypto Expansion
In the aforementioned announcement, crypto trading activities, digital currency mortgage provision, and other services are a risk for the economy. At the same time, the expansion of crypto assets violates regulations established by the People’s Bank of China (PBoC).
Regulators in Beijing have already called local authorities to combat and fight against these activities that are expanding in the market. China has mostly been against digital assets and their different use cases. Back in 2017, China banned cryptocurrency trading activities causing the whole market to drop.
In addition to that, the Chinese government stated that individuals and institutions cannot be involved in the sale of cryptocurrencies nor invest in them. Users and companies cannot perform transactions or trade digital currencies.
Other countries such as South Korea have also decided to ban Initial Coin Offerings (ICOs) as well. This has also affected the whole ecosystem at the end of 2017 when blockchain projects were expanding in the space.
Despite China’s negative stance towards digital assets and the industry, the government has shown interest in distributed ledger technology (DLT) and how it could be used to improve the economy and its efficiency. However, they stated at that time that their support to blockchain technology shouldn’t be considered an endorsement to cryptocurrencies.
Some reports were also suggesting that miners could also be affected by a government ban. Regarding this issue, a finalized version of the list of industrial activities that the country was planning to eliminate shows that banning Bitcoin mining was not included in their plans.