China's Cryptocurrency Ban is an Opportunity For India?
China banned financial institutions and payment companies from providing services related to cryptocurrency transactions in May and introduced similar bans in 2013 and 2017. Banks and payment companies say they support these efforts, but recurring bans close loopholes and highlight the issue of identifying Bitcoin-related transactions.
On Friday, China's strongest regulator tightened its crackdown on cryptocurrencies, banning all crypto trading and mining, hitting bitcoin and other major coins, and putting pressure on crypto and blockchain-related stocks. went Ten institutions, including central banks, financial authorities, and securities and foreign exchange regulators, have pledged to work together to eradicate “illegal” cryptocurrency activity, and for the first time, a Beijing-based regulator is working to ban all cryptocurrencies outright. joined forces.
In Related activities. China banned financial institutions and payment companies from providing services related to cryptocurrency transactions in May and introduced similar bans in 2013 and 2017. Banks and payment companies say they support these efforts, but recurring bans close loopholes and highlight the issue of identifying Bitcoin-related transactions.
Friday's statement is the most detailed and extensive of any major Chinese regulator and underscores Beijing's commitment to suppress the Chinese cryptocurrency market. “It is the most direct and comprehensive regulatory framework with the largest number of ministries in the history of Chinese cryptocurrency regulation,” said Winston Ma, an associate professor at New York University Law School.
The move comes amid a global crackdown on cryptocurrencies by governments from Asia to the United States, where highly volatile privately held digital currencies weaken control over financial and monetary systems, increase systemic risk and promote financial crime. and fear that it could cause harm. investor.
They are also concerned that “mining,” the energy-intensive computational process from which Bitcoin and other tokens are created, is detrimental to global environmental goals.
Chinese government agencies have repeatedly expressed concerns that cryptocurrency speculation could disrupt the country's economic and financial order, which is one of Beijing's top priorities. Analysts say China also sees cryptocurrencies as a threat to its sovereign digital yuan, which is in an advanced experimental stage.
"Beijing is so hostile to economic freedom that it does not even allow its citizens to engage in some of the most exciting financial innovations in decades," Republican Senator Pat tweeted. U.S. regulators are scrutinizing the risks associated with digital assets, but they say they also offer opportunities, including expanding access to financial services. 'public building'.
The People's Bank of China (PBOC) said that cryptocurrencies should not be in circulation and that foreign exchanges were banned from offering services to Chinese investors. It also banned financial institutions, payment companies, and internet companies from promoting cryptocurrency trading nationwide.
NBK said, "The government will strongly curb cryptocurrency speculation in order to protect people's property and maintain economic, financial and social order." China's National Development and Reform Commission has said it will work to reduce financial aid and power supply to the mining industry, which poses risks and impedes the achievement of carbon neutrality goals. Bitcoin, the world's largest cryptocurrency, fell more than 9% before offsetting these losses.
It was down 6.6% to $41,937 around 12:00 AM EST. Small coins that commonly mimic Bitcoin also fell. In May, China's cabinet promised to take tougher measures against bitcoin mining and trading. Friday's news shattered the hopes of crypto enthusiasts that the cabinet would not be able to fulfill that threat. New York University's Ma said, "This is an expression of the announcement in May of banning mining and cryptocurrency trading."