Crypto Trading Enthusiasm Returns in China, Prompting More Scrutiny from Country’s Regulators
The Central Bank in China seems set for another round of crypto crackdowns after President Xi’s latest remarks revived speculation on blockchain technology. Financial regulators in each Shanghai District are required to search and conduct an inspection of all suspected crypto companies and exchanges by 22nd November.
A notice issued by the Shanghai Internet Finance Rectification Agency noted that the regulators are expected to hand in their reports to the central bank by close of business on that day. The notice which first appeared on the web on Friday morning was later confirmed by Caixin, the Chinese Business Publication.
Emerging Decentralized Technologies
This latest move taken by the financial regulators has underscored the complicated relationship that China has with blockchain technology and other emerging technologies. In a speech made at the start of November, President XI asked his fellow countrymen:
“To help accelerate the development of blockchain technology.”
It’s worth noting that China has for many years been considered a top destination for crypto miners. But the government has also been persistent on issuing blanket bans on initial coin offerings and crypto-to-fiat trading, a move that began nearly two years ago. The blanket ban means that a majority of the population in the country has not been able to use crypto trading facilities.
Social Media Ban
Weibo, the China equivalent of Twitter has also gone ahead and banned its platform users from posting or publishing blog posts and content that contain the terms “crypto trading, “and “Blockchain.”
It went on to add that posts of this nature contained details that were in complete violation of local laws, which means that users posting the content were contravening Weibo’s community terms. As of Friday, it was not clear when this restriction was enforced, as users could still publish content containing the two phrases, as long as the terms were not used together.