In the last year, the cryptocurrency market took a series of heavy punches from the Chinese government. The market took the hits like a warrior, but the combos took its toll in many cryptocurrency traders. The market lackluster performance in 2018 pales in comparison to its stellar thousand-percent gains in 2017.
What has happened?
Since 2013, the Chinese government have taken measures to regulate cryptocurrency, but nothing compared to what was enforced within 2017. (Check out this article to get a detailed analysis of the official notice issued by the Chinese government)
2017 was a banner year for the cryptocurrency market with all the attention and growth it has achieved. The extreme price volatility forced the Central bank to adopt more extreme measures, including the ban of initial coin offerings (ICOs) and clampdowns on domestic cryptocurrency exchanges. Soon after, exploration factories in China were forced to close down, citing excessive electricity consumption. Many exchanges and industries have relocated overseas to avoid regulations but remained accessible to Chinese language investors.
If you have any queries pertaining to wherever and how to use Best cryptocurrency to buy now, you can get in touch with us at our own website.
Nonetheless, they still neglect to escape the claws of the Chinese language Dragon.
In the latest series of government-led efforts to monitor and ban cryptocurrency trading among Chinese investors, China extended its “Eagle Eye” to monitor foreign cryptocurrency exchanges. Companies and bank accounts suspected of carrying out dealings with foreign crypto-exchanges and associated activities are subjected to measures through limiting withdrawal limits to cold of accounts. There have also been ongoing rumors among the Chinese language community of more extreme procedures to be enforced on foreign platforms that allow trading among Chinese investors.
“As for whether there will be further regulatory measures, we will need to wait for orders from the higher professionals. ” Excerpts from an interview along with team leader of the China’s Public Information Network Security Supervision agency underneath the Ministry of Public Security, 28th February
Think about your child investing his or her savings to purchase a digital product (in this situation, cryptocurrency) that he or she has no way of confirming its authenticity and value. She or he could get lucky and strike it rich, or lose it all when the crypto-bubble burst. Now scale that to millions of Chinese citizens and we are talking about billions of Chinese Yuan.
The market is full of scams plus pointless ICOs. (I’m sure you possess heard news of people sending coins to random addresses with the promise of doubling their investments plus ICOs that simply don’t create sense). Many unsavvy investors are in it for the money and would give a flying fuck about the technology and innovation at the rear of it. The value of many cryptocurrencies comes from market speculation. During the crypto-boom in 2017, participate in any ICO with either a famous advisor onboard, a promising team or a decent hype and then you’re guaranteed at least 3X your investments.
A lack of understanding of the firm and the technology behind it, combined with the proliferation of ICOs, is a recipe with regard to disaster. Members of the Central loan company reports that almost 90% of the ICOs are fraudulent or involves illegal fundraising. In my opinion, the Chinese government wants to ensure that cryptocurrency remains ‘controllable’ and not too big to fail within the Chinese community. China is taking the right steps towards a safer, more regulated cryptocurrency world, albeit aggressive and controversial. In fact , it might be the best move the country has taken in decades.
Will China issue an ultimatum and make cryptocurrency illegal? I highly doubt so since it is pretty pointless to do so. Currently, financial institutions are banned from holding any crypto assets while individuals are allowed to but are barred from carrying out any forms of trading.