China Bans Over 120 Offshore Crypto Exchanges

China Bans Over 120 Offshore Crypto Exchanges

According to the state media, China is forced to put a ban on more than 120 foreign cryptocurrency exchanges under the pressure of state administration in order to restrict undesirable activities seen in the crypto world.

As per report submitted on Thursday, 23rd August 2018 by affiliated newspaper dealing in country’s market regulator and finance ‘Shanghai Securities News’, Chinese management will very soon intercept 124 websites in China which is controlled by the offshore cryptocurrency exchanges to further offer trading service to the people interested in making an investment in cryptocurrencies.

Chinese management will supervise and prohibit the domestic websites linked with initial coin offerings, cryptocurrency trading, and ban services dealing in payment of various cryptocurrencies such as Ethereum, Bitcoins etc. The journal amplified people about the Leading Group of Internet Financial Risks Remediation, which was headed by the deputy governor of the People’s Bank of China (country’s central bank) and created by China’s cabinet in 2016.

South China Morning Post made multiple calls to the central bank and all of them went unanswered. The reports also suggest that Beijing made the latest measures to strengthen the activities related to cryptocurrencies and not to block crypto trade because of concerns about financial instability.

At least eight blockchains and cryptocurrency-focused websites and other media outlets focusing on cryptocurrencies are recently blocked by the censors some of which raised million dollars in venture capital. Official public accounts of these entities were found to be blocked on Tuesday Evening on WeChat. This blockage was imposed due to violating the new regulations from China’s top internet adviser.

Beijing’s central Chaoyang district also issued a notice on August 17 against hotels buildings and shopping malls in the area hosting events for cryptocurrencies. The evidence was exposed this week on the web and was confirmed by the post.

Chinese regulators blocked ICOs last September by characterizing them as an illegitimate, pirated fundraising activity. In the same month, Chinese cryptocurrency exchanges were ordered by the regulators to cease trading.

ICOs is said to be a type of fundraising scheme by which companies exchange their cryptocurrencies/crypto coins popularly known as tokens which are used to pay in widely accepted currencies such as Bitcoin or Ethereum.

The government suppression caused Chinese cryptocurrency exchange operators and ICO projects to shift their operation to a friendly jurisdiction, similar to that of Singapore.

Earlier in the month of February this year, a state-owned media outlet reported that all the websites, including the overseas platforms dealing in ICO’s and cryptocurrency trading, will soon be blocked by the Chinese authorities. Since then, popular cryptocurrency exchanges such as Bitnance, Huobi, Bitfinex, and OKEx have been blocked on the mainland.

As per Shanghai Securities News after the crackdown that started in the mid of September, a total of 85 ICO projects and 88 cryptocurrency exchanges have closed in China. Not only this, the popular Yuan-Bitcoin trading pair has also dropped drastically.

Pan Gongsheng, deputy governor of the Central Bank made a statement in Beijing that China has made a right decision in order to restrict cryptocurrency exchanges last December.