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China Continues To Crackdown On Offshore Crypto Operators

China’s crackdown on cryptocurrencies earlier this year significantly impacted the value of Bitcoin and hurt hundreds of businesses that were licensed to operate in China.

Offshore operators have continued to target Mainland China and the demand for their services have been extremely high as Chinese investors were forced to turn to offshore operators once the domestic ban was rolled out.

Now Beijing is tightening its stance on all cryptocurrencies by announcing a fresh crackdown.

Local media reported that the Chinese government has banned 124 offshore cryptocurrency operators from offering services to Mainland China. This move does not come entirely as a surprise as earlier in the week the Government sent out a notice to offices, shopping malls and hotels banning them from hosting or encouraging anything associated with the cryptocurrency industry.

A local news media outlet said

The government will also continue to monitor and shut down domestic websites related to cryptocurrency trades and initial coin offerings (ICOs), and ban payment services from accepting cryptocurrencies, including bitcoin

China Happy With Bitcoin Disappearance

The Central Bank which is the People’s Bank of China (PBOC) had earlier expressed its delight in learning that its crackdown on Bitcoin had been highly successful. Market reports showed in July that Bitcoin trading carried out via the local currency (RMB) now accounted for less than 1 percent of all Bitcoin trading which was testament to the restrictions imposed by Beijing.

This new crackdown on offshore cryptocurrency providers will further limit the impact of Chinese investors on the global cryptocurrency market. The news of China blocking over 120 offshore cryptocurrency providers has so far not had any major impact on Bitcoin and other leading cryptocurrencies.

Money Laundering And Scams Push China

China has stated that one of the reasons why it has taken such a tough stance on the cryptocurrency market is because Chinese investors have been greatly exploited through bogus initial coin offerings (ICOs) which have been responsible for millions of dollars in lost income.

There are also concerns that money launderers are using cryptocurrencies to hide and wash their money. Since it is difficult for proper regulations to be put in place immediately, China decided to do the next best thing and impose a blanket ban on domestic and offshore crypto currency providers.

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