China Against Cryptocurrency – New Law Passed

China Against Cryptocurrency

Despite a nationwide crackdown on cryptocurrency, the Chinese government went one step further and passed a law banning all crypto events in Beijing’s financial district.

No More Crypto Events

According to the local news agency South China Morning Post, the authorities have banned all hotels, shopping malls, office buildings and other commercial properties from hosting “crypto talks and promotions”. Although the news was distributed by the mainstream media on August 22nd, the official announcement was released five days earlier on August 17th  by a local financial services department. An unnamed official confirmed the authenticity of the document, adding that the proliferation of crypto events in Beijing’s financial district has led to the decision. However, the document states that the measure is designed solely to protect the region’s public interests and financial security, as well as strengthen the Chinese Yuan and the country’s economic stability.

The document states:

“We now order each mall, restaurant, hotel and office building not to provide event venues that promote cryptocurrency and report back to the agency if such activity has been found”.

The development is the latest in a series of cryptocurrency and venue regulations. In April 2018, a major blockchain conference in Shanghai was halted after local police raided the venue.

Ban on 124 Crypto Exchanges

In a broader sense, Chinese regulators are stepping up their crackdown on crypto exchanges and related trading services. The authorities have prevented more than 120 exchanges from granting domestic traders access to cryptocurrencies, according to Shanghai Securities News.

Tax authorities and the China National Fintech Risk Rectification Office are said to have identified 124 overseas-registered trading platforms that also have international IP addresses and operate in mainland China. The two committees have the task of blocking Internet access to all the mentioned trading platforms.

Founded in 2016, by the Chinese State Council, the National Fintech Risk Rectification Office is a government agency that fights against financial risks and protects the interests of investors.

Most companies moved to crypto-friendly locations like Singapore and Switzerland after China’s ban. And while popular crypto exchanges like OKEx, Binance, and Bitfinex have been shut down after China’s blanket cryptocurrency ban in 2017, local exchanges seem to be operating at significantly lower trading volumes.

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