Chinese Authorities Intensifying Their Anti-Cryptocurrency Stance
There are mixed messages out of China at the moment regarding cryptocurrencies. As reported today, VeChain, a Singapore-based blockchain product management platform, is pairing up the Chinese government to improve the legitimacy of the tobacco supply chain.
However, when it comes to cryptocurrency trading, China is intensifying its crackdown. China banned ICOs and crypto exchanges in September last year and has recently turned its attention on cryptocurrency mining. According to Bloomberg, China is now going after any platforms and apps which have exchange-like functionality.
Authorities are planning a ban on all domestic access to any platforms, whether Chinese or in other countries, which allow centralized trading. Their targets include all companies or people who make markets or clear or settle cryptocurrency trades. At present they are not going after small payments between individuals.
Earlier this month, during a meeting of the Leading Group of Beijing Internet Financial Risks Remediation, an official from the Bank of China put forward measures that would further limit crypto-activity in the country.
China accounts for around 70% of all cryptocurrency mining, thanks to its areas of cheap hydroelectric power. The Bank of China representative suggested that the country could achieve a soft exit from the industry by suggesting local authorities slowly choke mining operations of electric power.
Singapore Central Bank Expects a Crypto Crash
In other Asian news, Singapore’s central bank head Ravi Menon echoed the apparent Chinese position of pro-blockchain, anti-cryptocurrency trading.
Menon said that he anticipated a crash in the cryptocurrency markets but hoped that when it happened the underlying technologies would survive. “When the crash has happened” he said, he hoped that “it will not undermine the much deeper, and more meaningful technology associated with digital currencies and blockchain”.