China blocking offshore crypto platforms
China is stepping up measures to ban overseas trading platforms, citing risks such as illicit issuance and fraud.
China’s central bank has revealed plans to escalate its ban on cryptocurrency trading and initial coin offerings (ICOs) by prohibiting local access to international digital currency platforms.
The development was first reported on Sunday evening by a publication – Financial News – linked to the People’s Bank of China (PBOC), according to the South China Morning Post.
“To prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs,” an article published by Financial News said.
The article declared that ICOs and virtual currency trading “did not completely withdraw from China”, despite the government’s industrious attempts to implement a nationwide ban on cryptocurrency-related activities.
“After the closure of the domestic virtual currency exchanges, many people turned to overseas platforms to continue participating in virtual currency transactions,” the Financial News said.
“Overseas transactions and regulatory evasion have resumed… risks are still there, fueled by illegal issuance, and even fraud and pyramid selling.”
The clampdown on overseas trading platforms was confirmed by the PBOC, according to Xinhua news agency.
Since these latest reports of intensified restrictions, advertisements for cryptocurrencies have apparently stopped appearing on China’s biggest search engine, Baidu, and popular social media platform Weibo.
China first introduced a ban on cryptocurrency exchanges and ICOs in September 2017. This forced locals to seek out alternative trading arenas, such as international exchanges, to utilize their funds from the mainland.
Despite being home to the largest cryptocurrency mines in the world, China has an unfavorable view of crypto. Virtual currencies aren’t considered legal tender and banks are banned from holding and distributing them.
Earlier in January, the PBOC instructed China’s financial institutions to cease providing cryptocurrency services, including the prevention and suspension of payment channels used for digital currency settlements.
The PBOC said banks should supervise capital settlements to thwart stakeholder complaints and protests.
Similarly, South East Asia’s Bank Indonesia declared that virtual currencies, including bitcoin, were no longer recognized as a legitimate form of payment and are forbidden for use in all financial transactions.
A number of the world’s central banks, and the governments responsible for them, have called for tighter regulation of cryptocurrencies in order to prevent misuse, deter anonymous trading and boost transparency.
However, despite previous reports of a potential shutdown, South Korea has “no intention” of halting cryptocurrency trading, according to a recent statement by the country’s finance minister Kim Dong-yeon.
We’ve compiled a list of exchanges where you can buy and sell crypto, plus digital wallets to hold them and a list of the most popular alternative coins on the market. You can also stay up to date with the latest news.