The Chinese government has once again sent the crypto world into a great panic state. Back in the month of May, China was responsible for Bitcoin dropping to almost half of its value. Yesterday, the news of the crypto ban in China produced similar results.
Market analysts and experts compare China’s previous crypto crackdown to the recent one on Friday. It was concluded that the recent crypto ban was the most severe one and made the stance of China on digital currencies quite clear.
China is one of the first nations in the world to release a CBDC, i.e., digital yuan. This development didn’t change China’s grave stance on cryptocurrencies. The People’s Bank of China or PBoC recently gave a green signal to the offshore RMB too.
The severe crypto ban order
The severe crypto ban order by Chinese authorities forbids any firm from converting fiat into crypto or vice versa. If a person or an organization is caught, they will be penalized.
This severe law also includes people living inside China’s boundaries, working for offshore crypto exchanges that serve Chinese citizens. Many Chinese authorities are involved in the latest crypto ban, as Bill Bishop speculates. The involvement of law agencies makes the crypto ban issue more severe and problematic.
In this recent crackdown, civil organizations were not involved. The decision involves Law enforcement organizations like the Cyberspace Administration of China (CAC), Public Security Bureau (PSB), and the Supreme People’s Court (SPC). This proves that crypto trading is now viewed as a crime in the country of China.
Some experts see nothing new in China’s latest crackdown
According to market experts and observers, China has had a negative stance on cryptocurrencies since the very beginning. There is nothing big about this latest development as China did the same in 2013 too.
The Founder of Tron blockchain, Justin Sun, conveyed to CoinDesk that this crypto ban is nothing to be afraid of. In the future, when other Asian countries will introduce crypto adoption based on stricter laws and regulations, China will too.