The Chinese Government has banned all forms of cryptocurrency trading, the use of trading platforms and any activity in regards to ICOs. The Chinese individuals are searching for a way around these restrictions much like they have used VPNs and other routes around the great Firewall. We are in constant contact with many active cryptocurrency traders and bitcoin miners who have left or are in the process of taking their business to other countries. The most popular locations include Japan, Singapore, Hong Kong, South Korea and other small Southeast Asian countries. We are seeing one of their largest cryptocurrency trading exchange, OKCoin, switch their clients to their overseas platform OKEx.
What is the true motive behind China’s ban of crypto?
The regulators issue ICO scams, high degree of risk, and other typical excuses as a reason to ban crypto (including banning most websites and WeChat groups that include Crypto in its name). Is the government fearful for the power of blockchain technology to decentralize their power and data centers? Is the government actively creating their own utility token which may require its residents to use if they want to actively trade altcoins? Are the officials really concerned about the scams when there are corrupt officials and business bribery much larger than this small industry?
We cannot say the true motive behind the ban of crypto but will be able to tell in the future based upon their next actions. We expect to see more guidance and regulations issued sometime soon and hope for the ban to be overturned before the end of the year.