China will ban all cryptocurrency related websites

Elias Hubbard
February 6, 2018

The report acknowledges that China's initial ICO and domestic exchange ban went ignored.

"Overseas transactions and regulatory evasion have resumed ... risks are still there, fueled by illegal issuance, and even fraud and pyramid selling", the article said.

Following China's ban on ICOs and cryptocurrency exchanges in September past year, many businessmen relocated to Hong Kong or Japan while they were still raising funds from investors in mainland China, which is still home to some of the biggest Bitcoin miners in the world. But despite many countries trying to regulate the market, the very nature of cryptocurrency makes it very hard to localize.

The South Morning China Post (SMCP) has reported that crypto currency related searches on Weibo, a popular Chinese social media platform similar to Twitter, and Baidu, referred to as the Google of China, do not yield any results. China has blocked the websites that offer cryptocurrency trading and ICO websites. In September, Shanghai-based bitcoin exchange BTCC announced the closure of its China trading operations.

The central bank - according to a report by the official Securities Times - orders financial institutions to stop providing banking services or funding for any activity related to cryptocurrencies. But for many people, Bitcoin and all other coins are still profitable, even after market caps of all digital coins have dropped back down to early-December levels.

It said some platforms, mostly based in Japan or Hong Kong, used "over the counter" (OTC) systems to allow individual traders to perform peer-to-peer transactions. But the move failed to discourage Chinese investors who are accustomed to getting around government bans. Bitcoin is now trading below $8000 United States dollars down from close to $20,000 in December. "Already feeling delicate, then, bitcoin was dealt another major blow this Friday, plunging 10.5% to 8,000 following reports that the US Commodity Futures Trading Commission is investigating the cryptocurrencies ludicrous end of 2017 rise for signs of market manipulation".

Cryptocurrency traders might feel like they are under attack from all sides as China, South Korea, and India all threaten tougher regulation on the market.

Other reports by Click Lancashire

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