China, one of the hardest countries towards cryptocurrencies has decided to keep banning cryptocurrency activities. The Chinese government has been imposing strict sanctions to Initial Coin Offerings and cryptocurrencies. Now it has taken a step forward banning individuals to use foreign exchanges using virtual private networks.
China Bans Cryptocurrency Trading on Foreign Exchanges
The new Chinese ban may damage the cryptocurrency market as a whole. At the moment cryptocurrencies are experiencing a correction of around 60% of their all time highs. That would not help to revert the downward trend in which we are now.
The Chinese authorities have decided to outlaw domestic crypto exchanges in order to avoid a potential financial crisis. The same the did with ICOs, arguing that some of them were scams. Individual investors were not able to trade in Chinese exchanges and ICOs were forbidden. That’s why, Chinese population interested in cryptocurrencies started to use foreign exchanges from South Korea or Japan.
A Chinese private investor commented:
“I think the new move literally means it would be even harder to circumvent the ban in China… people promoting related business programmes may be arrested.”
Furthermore, some days ago, Chinese and South Korean authorities met in order to discuss further cryptocurrency policies. The governor of the People’s Bank of China has met with the South Korean Minister of Strategy and Finance, Kim Dong-yeon. They have been discussing common policies to implement regarding the cryptocurrency market.
Singapore, Hong-Kong and Japan Enjoy
While China and South Korea are having hard stances on cryptocurrencies, other Asian countries are receiving the benefit of this measures. Japan is one of the friendliest cryptocurrency countries in the world. It is embracing cryptocurrencies as few other countries on earth. Its GDP has been increased due to the cryptocurrency market. Enterprises accept cryptocurrency payments and the government supports it.
Singapore has also been embracing cryptocurrencies. The main difference with China and South Korea is that it has been regulating the activities around cryptocurrencies. That means that even when it has an open cryptocurrency policy, regulations control the market and legitimize it.
With these news, China and South Korea may lose important amount of investments. Wealthy investors would move their funds to other countries. The ones mentioned before may be good choices for these investors. Furthermore, China is also thinking about restricting cryptocurrency mining activities. Bitmain is also thinking about moving its operations abroad, to Canada or Switzerland.
Clearly, the measures that China is imposing are only damaging investors, the country’s possibilities for its future and freedom. It will be important to follow the next events coming from this country and region.
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