Popping the crypto bubble in China, with a second-round crackdown coming
The Chinese authority decides to ban crypto-related events in the local area
A tumbling token price in the market; a string of crypto-related projects and companies are shut down or go bankrupt; rising crime rate and acute anxiety over the crypto future; Is the portrait before September 4th,2017, or, the prospect of the local cryptocurrency industry in the following days?
The recent crackdown conducted by the Chinese authority to introduce stricter regulation over the cryptocurrency-related business at home arouses concerns about the prospect of the cryptocurrency industry in China. There is a growing sign of a second-round regulation from the authority.
The Ban on cryptocurrency-related events in China
Chinese regulation on cryptocurrency industry
About a year ago, Pan Gongsheng, the vice-governor of PBOC (The People's Bank Of China) stated that ICO and things of this sort are not prohibited in China, and cast ICO as an illegal fundraising program. Then he reiterated his ground to the public on crackdown over crypto-related fraudulent activity again.
According to a local news outlet, the governor laid out his programme to regulate the crypto industry:
Measures should be taken to supervise online cryptocurrency exchanges which register outside China but still provide crypto trading services to Chinese citizens;
Stricter regulations should be introduced to discipline ICO and cryptocurrency trading websites domestically.
Cooperation between the government and the third-party payment platforms should be introduced to curb crypto-related businesses.
Moreover, one local source has reported that the PBOC further issued a warning against ICO on its official site and the local financial authorities now create a channel for people to report illegal ICO- and crypto-related events on the Internet.
Adding all these up we can tell the story about how are cryptocurrency and the industry going to be in China in the following month.
Outside China, the circumstance doesn't look good too. Though the SEC withdrew the rejection of Bitcoin in August, there is uncertainty hovering above the industry, with the future of the crypto world now depending on what SEC do next.
It's not yet clear how the industry develops in the future, for after few days of slumps, the market now see a momentum for growth, as major cryptos, such as Bitcoin value shows a slight increase.
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The performance of cryptocurrency today, however, it's clear that the market is now stuck in depression for a long time and a stricter crackdown is coming, notably in China.