Chinese regulatory bodies are moving continually in the direction of hostility towards the cryptocurrency market, now more than ever. This is due to the desire by the government to block more than 100 international cryptocurrency exchanges from offering any kind of trading services to residents within the country.
According to the Shanghai Securities Times, a news outlet that has gained a reputation (or notoriety) for serving as a platform for Chinese financial authorities. It reported on Thursday that the China National Fintech Risk Rectification Office has identified over 124 trading platforms that possess international IP addresses but are otherwise still available to domestic residents to invest through.
The CNFRRO now intends to ramp up its ongoing efforts in monitoring and policing the commercial use of cryptocurrencies and to block internet access to these trading platforms, according to the report.
This stance has since been considered and authorized by China's State Council, the country's Fintech Risk Rectification Office is a government organization, which aims to protect against financial risks related to issues such as cryptocurrency trading and peer to peer lending at any capacity.
In September 2017, China's central bank, the People's Bank of China struck a down a rule, instigating a wide-spread ban on initial coin offerings (ICOs) and, by extension, cryptocurrency trading platforms which may operate within the country. Following this ruling, major exchanges that were originally based in China have since moved overseas to the likes of Europe, the US, and Malta.
At the moment, in the wake of the Bank of China's ruling, several major cryptocurrency exchanges such as OKEx, Bitfinex, and Binance have been rendered unavailable due to internet access to them being cut.
This report also includes the announcement that the agency will operate with a significant amount of power towards cryptocurrencies, stating they will act to permanently shut down domestic websites, including trading accounts that operate on the WeChat messaging app, particularly if they are found to be providing crypto trading or ICO services.
The report also announced that the agency is currently also in talks with a number of third-party payments vendors, under the demand that they scrutinize and halt accounts that are suspected of handling cryptocurrency transactions of any proportion.
To put this aggressive stance into practical terms, it was only two days ago that several Chinese cryptocurrency media outlets were banned from operating on WeChat, according to other reports.
Tencent, the company which owns WeChat, further confirmed these rumors with the . news outlet, Caixin on Wednesday. Tencent further added that the ban was instigated because the accounts in question were found to have provided other users with crypto trading and ICO services at some level. Some of the number discovered to be doing so were subsequently ordered shut down with immediate effect.