China occupies a central role in the crypto space thanks to its enormous hashrate and number of top crypto users. There is a parable that when China sneezes, the whole world has a runny nose, which is the case in this case.
In early 2021, regulators in the world’s second largest economy tightened their crackdown on mining, creating shock waves around cryptocurrencies, resulting in mass migration of miners, followed by sharp falls in prices and hashrate. However, the community can now breathe a sigh of relief as the Central Bank of China (PBoC) is pleased with the results achieved.
PBoC headquarters in Beijing, China
Will not intensify the repression
On September 3rd, PBoC released Financial Stability Report 2021 highlights the great achievements of anti-cryptocurrency. The report indicates that these efforts have been very successful and are moving into normalized surveillance mode.
With normal controls, it is conceivable that the Chinese supervisory authorities will not introduce any new guidelines against cryptocurrencies. The country is expected to continue to monitor the situation closely and to pay more attention to illegal fundraising activities, Ponzi schemes, cross-border gambling or the fight against money exchange activities are considered illegal).
China’s unfriendly sentiment towards cryptocurrencies
China has had a bad relationship with cryptocurrencies in the past and culminated in a violent crackdown in early 2021.
The Chinese authorities cited environmental protection and the fight against fraud as the main reasons for the action. In addition, they are also pushing the experimental development of a digital yuan (e-CNY) with the aim of replacing both Bitcoin and the US dollar.
The fact that the Central Bank of China is taking a normalized oversight approach to cryptocurrencies is very positive news for the market as we cannot expect a crypto-friendly China. Hopefully they won’t step up their crackdown on cryptocurrencies.
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According to AZCoin News