- Cryptocurrencies are financial fraud – CCTV1’s Focus Report
- “China has no intent to embrace any public open cryptocurrency at all” – Dovey Wan, Founding Partner at Primitive Crypto
- Binance & Tron’s Weibo accounts are already suspended while local government is cracking down on crypto exchanges
China is taking serious action against cryptocurrencies, solidifying its stance on “blockchain not bitcoin.”
Dovey Wan, Founding Partner at Primitive Crypto shared the latest developments where CCTV1, the national flagship television network of the People's Republic of China featured a 60-minute investigative program on cryptocurrency.
The program came on Focus Report, one of CCTV’s high rating programs and a column for Chinese TV news commentary that covers current affairs with background analysis, and social perspective, where cryptocurrency was stated to be an illegal Ponzi.
JUST IN 🤭🤭🤭
Today CCTV1 (CCP official channel) featured another investigative work of “cryptocurrency” on 焦点访谈, which I would considered 60 minutes or even higher profile TV program
TL;DR – cryptocurrency is unregistered security, financial fraud and illegal ponzi pic.twitter.com/gLqIjXDsqI
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) November 18, 2019
The program also called out the ICOs by stating that blockchain is not “ATM machine.” However, Bitcoin wasn’t specifically mentioned as the “fraudulent cryptocurrency.” “TL;DR – cryptocurrency is unregistered security, financial fraud, and illegal Ponzi,” wrote Wan.
Wan says, these steps only move to show that “China has no intent to embrace any public open cryptocurrency at all.” This further means nationalization of cryptocurrency infrastructure, trading, ASIC, and mining is “inevitable”.
China is already working on its central bank digital currency amidst concerns of capital flight, and crypto frenzy and fraud. “Even though these seem to be lively and vibrant today, tomorrow they may all be on the list (of crime),” Wan shared the loose translation of Chinese President Xi Jinping's latest speech.
China Cracks Down on Crypto Exchanges
The blockchain not bitcoin narrative was reinforced last week when the leading cryptocurrency exchange Binance and Tron have been banned on China’s Twitter, the largest micro-blogging service Weibo. The official accounts of Binance and Tron were suspended by Weibo last week.
Amidst this also came the news of government taking fresh steps to crack down on digital currency trading, calling out inspection of crypto exchanges. The watchdogs in Shanghai issued notices calling for a cleanup of companies involved in virtual currency trading.
In a notice released on Nov. 14, the Shanghai headquarters of China’s central bank and the city’s financial regulator ordered the local government agencies to shut down any businesses tied with cryptocurrency, reported Bloomberg.
The crackdown came after last month President Xi publicly urged embracing blockchain technology that had Bitcoin shooting up 42% and blockchain-related companies' shares climbing as well.
China first banned trading of digital currencies in 2017 but trading is still rampant through alternatives like over-the-counter options offered by crypto exchanges OKEx and Huobi, with Binance being the latest one to join in.