This new law enforcement from the bank of China has made crypto miners leave the country but this anti-Crypto policy is more serious than ever.
This is backed up by the fact that Chinese financial authorities made very clear to banks that they weren’t supposed to be facilitating crypto assets to individuals or any type of crypto related transactions whatsoever.
Also last Monday the agricultural bank of China said that it would make investigations to spot crypto asset trading and transactions, and detection of this activity would result in account suspension.
Cryptocurrency exchanges were banned from the country in 2017 but it has not banned the ownership of cryptocurrency, but individual risk of punishment is very high due to China’s social credit system.
A matter of Individual Reputation
Being flagged with illegal crypto currency assets or caught making or having made transaction could lead to people to be banned from airline flights or not being able to make a contract for High-speed internet.
Chinese cryptocurrency commentators are also being banned from social media platforms since the crackdown, and speculation is running wild on the country.
This means that there is a downward pressure on crypto prices as almost a third of the worlds global crypto trading takes place in east Asia.
The conflict of the anti-crypto assets by China’s government was very evident as nowadays Alibaba founder Jack Ma almost disappeared from the public eye when just month prior to the initial public offering of the Ant Group, he was giving non-stop conferences.
But when the initial offering of the Ant Group happened, he gave out some critical statements towards financial regulators, Ma became basically invisible. He is now dedicating to arts and doing charity work.
An explanation for bitcoin recent volatile prices
These actions from the government of China have made Mining businesses like HashCow and BTC.Top wind down their operations relocating their bases of operations to Kazakhstan and other nearby countries.
But as serious as this sound bitcoin has just dropped 15% since the statements of the people’s bank of China. And have been steadily rising around 4% every day the last week.
Public opinion shows that even if Chinese government has made China an anti-crypto currency state, the fact that a multibillionaire like Jack Ma experienced such losses just from a statement proves that a system that nobody is able to control for it own interests is more valuable.
This also happened to Justin Sun Founder of Tron (an Ethereum imitator) that paid $4.6 million to have a meeting with Warren Buffet. But pressure from the CCP made Sun cancel the meeting and like Jack Ma disappeared from the public eye for a while.
Sun was able to have the meeting in February 2020 and some speculation was being made that this punishment was an anti-scam effort on Sun made by the CCP in times where the Chinese people were being victims of pyramidal schemes.