Chinese Central Bank Plans to Restrict Crypto Trading

BEIJING, China – While the Chinese are very supportive of the digital Yuan and have shown significant progress in the market, they have shown no sympathy for the digital currencies. The long-running Chinese anti-crypto currency campaign has retaken its tool. And now, authorities from the Chinese government have announced that they are planning to restrict the crypto trading anytime soon.

The Chinese Central Bank takes the lead of the said campaign.

Last Friday, an announcement was made by the Shanghai headquarters of the People’s Bank of China (PBoC), declaring their intention of cracking down the crypto trading deeper.

Since 2017, coin offerings and crypto exchanges have already been banned in the country. Apart from this, they have an extension of their campaign that aims to steer the cryptocurrency miners away from China. Their recent significant moves were curbing the social media accounts of the crypto trading firms in an attempt of total disconnection.

The president of China, President Xi Jinping, is now calling out for new and improved adoption of blockchains. He had also encouraged his countrymen to utilize blockchains for innovation purposes only. The president said that his ideals and visions would be to have a blockchain-based future that the country could lead.

Also, the PBoC is establishing their own digital currency. However, other coins from the market, such as Ethereum and Bitcoin, are not allowed in their territory.

They released a statement saying that there are no similarities between the cryptocurrencies and the blockchain. Apart from this, they have also sent a warning to the citizens of China, pointing out the risks that are involved with they trade using unpredictable digital assets.

Their regulator stated that the risks involved in virtual currency trading and financing are as follows: risks of business bankruptcy, risks of dealing with a false asset, increased false investment speculation, and many more. This is a calling to the investors that they should improve their awareness with regards to risks prevention to avoid becoming the next victim of scammers scattered online.

Furthermore, they claimed that they are interested in adopting new measures such as interviews and examinations. In an attempt to control the issues that are linked to crypto trading, they are now banning entities as well.

Schengen law enforcement has reported that there are now 39 illegal crypto trading companies that are active in the area. These companies are involved in fraudulent cases using crypto coins. The authorities didn’t declare further details about these scam operations.