Despite China’s sweeping ban on all crypto-related activities in the country, the country still accounts for around 10% of all global transactions.
China’s crypto activity falls by 80%
Accordingly report According to the People’s Bank of China, all P2P online lending platforms in the country have shut down, and outstanding loans have fallen from 1.2 trillion yuan to 490 billion yuan.
The report also states that the bank plans to “integrate the entire financial business of Internet-based companies into the custodian and standardize the business cooperation between the licensed institutions and the Internet platform companies.”
The Chinese government has been dealing with the emerging industry since 2013. It initially banned financial institutions such as banks from facilitating bitcoin transactions and began investigating several crypto companies in 2017.
This investigation has forced many companies to shut down, but the industry somehow still thrives in the country as miners from the country dominate the global hashrate.
But in 2021, the government launched a full-scale crackdown on the crypto space, banning all cryptocurrency mining and trading within its jurisdiction.
Since then, all efforts have been directed towards the deregulation of cryptocurrency exchanges in the country. China’s Supreme Court recently ruled that cryptocurrency trading is illegal fundraising.
Furthermore, activities like OTC, ICO/IDO, cryptocurrency trading, futures contracts, and profit farming are all illegal fundraising activities.
Due to the interpretation that has come into effect, domestic cryptocurrency trading now puts individuals at risk of long-term imprisonment.
Amid an 80% drop in trading volume, authorities are promising to completely eliminate the cryptocurrency and limit the hype surrounding it.
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According to Cryptoslate
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