Bitcoin News and Finance
China’s Crypto Crackdown: Fundamentals Still Show Bull Market Continuation, Bobby Lee Says ‘Don’t Panic’ Skip to main content

China’s Crypto Crackdown: Fundamentals Still Show Bull Market Continuation, Bobby Lee Says ‘Don’t Panic’

China's Crypto Crackdown: Fundamentals Still Show a Bull Market Continuation, Bobby Lee Says 'Don’t Panic'

The People’s Bank of China (PBOC), the country’s central bank, published a Q&A to its website which said that Chinese citizens participating in virtual currency exchange offshore is “considered illegal financial activity.” The PBOC also reiterated comments it had made in the past stressing that “financial institutions and non-bank payment institutions” cannot process crypto payments.

China’s Central Bank Shakes Crypto Markets

The cryptocurrency economy shuddered on September 24 after China’s central bank once again said decentralized virtual currencies are not welcome in the country. The PBOC has been saying things like this since 2013 and then four years later, they banned crypto exchanges operating domestically in 2017. In 2021, as the crypto economy reached new heights in value, the Chinese government cracked down on bitcoin miners operating in the country. This caused Bitcoin’s global hashrate to plummet a great deal and many Chinese miners migrated to other regions.

Now China’s central bank is warning the citizenry of “illegal” behavior when it comes to cryptocurrency use. The PBOC posted a Q&A to the central bank’s website which declares virtual currency exchanges offering services to domestic residents are illegal and will be investigated. “Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,” a rough translation of the comments noted. The translation also said that employees working for these international exchanges will be investigated. The PBOC further added:

Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies.

China’s Seventh Warning, ‘Onchain Fundamentals Still Indicate That Bull Market Continuation in Q4 Is Likely’

Meanwhile, prior to the news from China, the crypto economy was in the midst of rebounding from the last downward slide after the initial Evergrande scare. In a note sent to Bitcoin.com News, the executive director at crypto/digital assets hedge fund ARK36, Ulrik K. Lykke, noted that this is the seventh time the Chinese government has cracked down on bitcoin.

“Yet again, the Chinese government has cracked down on Bitcoin. Since 2013, it has done so at least seven times now – and twice this year already,” Lykke stressed. “While each time this happens, the markets react with a price drop, each time the effect is smaller and more short-lived. The ‘China bans Bitcoin’ story has gained almost a meme-like status in the Bitcoin community because of this. Investors should be careful not to make emotional decisions based on this trending news story as onchain fundamentals still indicate that bull market continuation in Q4 is likely.”

Ballet Founder Bobby Lee: ‘Not the Last Nail in the Coffin’

Bobby Lee, the founder of one of China’s first bitcoin exchanges and the cold storage card firm Ballet, said that the PBOC warning from China is not the end. “Don’t panic: China has just banned bitcoin again. This time, the ban targets trading on offshore exchanges (using VPN), as well as using local agents or OTC services to exchange from CNY to & from USDT. As bad as this may sound, it’s actually NOT the last nail in the coffin,” Lee remarked on Twitter.

George Zarya, CEO at digital asset prime brokerage and exchange Bequant discussed the subject with Bitcoin.com News on Friday as well. “China has been known to go to extremes with either very assertive statements and prosecutions to complete radio silence,” Zarya told the Bitcoin.com newsdesk.

“This time the point was made very clear that China will not support cryptocurrency market development as it goes against its policies of tightening up control over capital flow and big tech. For the institutional crypto industry, it won’t change much as those who could leave already left and those who couldn’t have either closed or gone under the radar. The retail market most likely has gone under the radar and will continue to support market volumes,” the Bequant executive added.

What do you think about China’s latest statements about bitcoin and virtual currency exchange? Let us know what you think about this subject in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory