- China shutting down exchanges “caused speculators to start selling” – Brian Kelly
- All promotion activities on virtual currency are illegal – CCTC News
- 173 of virtual currency trading and token issuing platforms are closed down
- Beijing police arrested 10 suspects involved in the fraud of the illegal digital currency exchange BISS
Chinese President Xi Jinping promoting blockchain exchange had Bitcoin price surging 42% to $10,500 in two days. But since last week, China has been strongly reinforcing the blockchain, not bitcoin, narrative while cracking down on virtual currency trading venues.
This crackdown had the leading cryptocurrency crashing from $8,500 to almost $6,500, losing over 23% of its value.
Crypto investor Brian Kelly in a recent interview with CNBC said China’s latest stance on banning crypto trading has affected the BTC price negatively.
Kelly said China shutting down exchanges “caused speculators to start selling.” As such, some of the miners have begun to capitulate, putting further downward pressure on BTC price, he said. However, China is showing no signs of slowing down.
Cracking Down Hard
China is cracking down hard on illegal transactions related to digital currency trading by demanding all-round inspecting. As per the announcements issued by Shanghai and Shenzhen, among other regions trading venues will be overhauled.
Shanghai financial regulator's new anti-ICO and crypto trading WeChat flyer – https://t.co/RRvBe5IcxS
They even came up with a 4 verse doggerel at the end of the post to warn the public about crypto.
Next thing you know the school children will start reciting the lines.
— Melody He (@melmelmelting) November 25, 2019
Blockchain is not equal to virtual currency is another thing China has taken to put emphasis on. CCTC News, a predominant state television broadcaster in Mainland China reported on Nov. 24 that all promotion activities on virtual currency are illegal. The attitude of regulatory authorities on digital asset speculation and trading venues, it said hasn’t changed and remains the same.
With the recent popularity of blockchain, virtual current has returned to the trend and illegal activities are showing signs of resurgence. It further points out how as Bitcoin price soared, institutions not involved in currency but in the name of blockchain have been engaged in illegal financial activities.
Reportedly, the China Internet Finance Association and Emergency Center have begun the search and disposing of newly discovered virtual currency trading venues and ICO activities. Payment institutions are also required to strengthen their investigations.
According to the China Financial Stability report 2019, they have already closed down 173 of Chinese virtual currency trading and token issuing platforms with no big stability or social problems caused.
Just in: "The 173 Chinese virtual-currency trading and token issuing platforms have all exited without risk", from PBoC's newly released China Financial Stability Report (2019).
— cnLedger (@cnLedger) November 25, 2019
Moreover, Beijing police have arrested dozens of people. CCTV reported that the Beijing police cracked the fraud of the illegal digital currency exchange BISS and arrested 10 suspects which have effectively sound the alarm for investors.