China plans to bring laws to convict crypto activities

China has not stopped targeting the crypto industry as the Chinese judiciary plans to construct laws for conviction and sentence any crypto-related activities. 

In early 2021, the Central bank of the country declared the crypto transactions illegal, after which a heavy crash followed. This year’s government’s guideline on crypto crackdown seems the most serious as the country left nothing, from mining to trading.

Now, the government aims to classify crypto-related activities under criminal offense, which might include imprisonment as per the inside sources.

Colin Wu, a Chinese journalist, revealed that the officials close to the government told a local news reporter that the government and the country’s judiciary are working closely to bring possible new laws related to crypto offenses. He wrote on twitter:

“Person close to the government told Caijing, a local magazine that the judiciary is planning to convict and sentence cryptocurrency behavior. It may issue relevant judicial implications in the upcoming days.”

Despite crypto being illegal in the country, it is not punishable as per any law that officials feel incomplete. Thus, the judiciary system is planning to bring new laws into the field.

Will China affect the current trends?

Not much time has passed since China released its crypto crackdown guidelines banning all the activities. This implies the Chinese plan to crack the industry down entirely. 

The main reason behind these actions is their decentralized nature. But the government is citing reasons like environmental issues and illegal activities. 

A crucial point to note here is the increasing number of Chinese shifting towards DeFi projects. This led to the sudden surge in the price of DeFi coins after the crackdown announcement.

Chinese are searching for ways to trade digital currencies as the People’s Bank of China has also banned foreign exchanges in the country. Chinese are able to bypass the current crackdown using DeFi, which the government wants to stop. Thus, to stop people from getting involved in DeFi, it is bringing punishable laws for any crypto-related activities.