Chinese Investors are Buying Bitcoin and ICO Tokens Despite Country’s Cold Crypto Shoulder
Investors Can Still But Bitcoin and ICO Token In China Despite Blanket Ban
According to an investigation conducted by the Xinhua News Agency, it is possible to circumvent the Initial Coin Offering (ICO) ban in China. Despite the ban, investors have been circumventing the law by using an overseas shell company as one method. After the ban, domestic crypto exchanges opened shop overseas. However, while they appeared closed in China, they continued to provide trading services for their customers in the country.
Now we’re hearing of a Chinese hotel to accept Ethereum, a first for China, and perhaps a first for the entire world.
This dichotomy where cryptos are both banned and not banned is due to a peculiar feature of all regulatory systems whereby the Central Bank of a nation has the authority to direct commercial banks to not do business with something even if that something is perfectly legal.
The Chinese parliament has passed no law to ban cryptos, therefore technically cryptos are not banned. The Chinese Central Bank has however issued a diktat to ban commercial banks from serving crypto exchanges in a move that in many ways usurps accountable governing systems both in China and elsewhere.
Like India, where the central bank there has issued a similar order. This, however, is now being disputed at India’s Supreme Court where the matter has been adjourned for days on end, yet the decision will have considerable constitutional consequences for the unelected central bank would be able to rule over parliament in financial matters if the Supreme Court goes their way.
Yet in China the situation is even somber because China’s version of Amazon and Google used to accept cryptos once, then they stopped under pressure from the Chinese Central Bank.
The only way to make sense of this is again China’s Central Bank arbitrarily intruding to pressure certain commercial banks with threatening account conclusions of certain businesses.
Naturally, China’s Amazon and Google are far more prominent than some hotel, so they were forced to stop accepting cryptos while the rest are so many that the bank arguably can’t go around policing it all without significant backlash.
Earlier this month, BitcoinExchangeGuide had bought you the fascinating story of a woman who survived 21 days with 0.21 BTC in China.