Crypto Activities in China to Face More Scrutiny
On Sunday, China’s state media warned that crypto dealings would face more supervision and inspection. Keep in mind that Bitcoin faced a sell-off on Friday after Beijing’s clamp down on the digital asset’s mining and trading activities. Xinhua Communists Party commented in a Sunday publication that the crypto market should expect further tighter scrutiny and supervision.
The nation believes that virtual currency has higher risks compared to what traditional investment has. Xinhua stated that the crypto industry lacks clear supervision regulations. Moreover, the market has high volatility yet not mature. The announcement was also to remind crypto fans that cryptocurrency trading cannot be a wealth-creating business.
The declaration comes after the state’s concerns on financial and economic matters. The statement showed a continued clampdown on BTC trading and mining activities in the nation.
However, the statement didn’t elaborate on the protocols to be used in this clampdown.
Remember, China banned Bitcoin financial transactions in 2019. However, the government seems to ignore the crypto mining deals in Xinjiang, Sichuan, Inner Mongolia, and other locations to date.
Xinhua commented that the regulators’ main concern is how to alleviate transaction risks and crypto speculation. For that reason, the authorities tighten their market supervision and inspection.
China’s latest clampdown follows the nation’s interest to launch its sovereign digital money. Deutsche Bank states that the strategy by China might seize some digital coins for some time.
Chinese financial firms prohibited from involving in cryptocurrency are accepting the digital yuan.
In Huaqiangbei, the leading electronics market, graphics card vendors seem unworried by the jurisdiction’s clampdown on crypto activities. The Shenzhen district marketplace deals with cards utilized in crypto mining rigs.
Although aware of the BTC plunge, most vendors declared that mining machines and graphics card prices have not declined due to the current international chip shortage. A given vendor said that the crypto market has always been unstable.
However, some vendors agreed that China’s latest clampdown is among the reasons behind Bitcoins decline.
A given citizen commented on the microblogging community that the crackdown is because of the challenge that cryptocurrency is posing to the national currency. The citizen gained many likes.
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