China to Block 124 Overseas Trading Platforms

Reports from China today are that the government is taking steps to block access to 124 overseas-based trading platforms, as part of their ongoing strict stance on crypto. Local Chinese news site Cnstock reports that a number of WeChat groups related to ICOs were shut down on the 21st August and that now, the Chinese government are employing a three-step approach to completely clamping down on overseas and domestic attempts to subvert the bans they have put in place.

The Steps

According to Cnstock [translated from Chinese], the steps are as follows:

Step 1: Upscale monitoring operations to allow for real-time blocking:

“Firstly, the 124 websites are located outside the country, but the virtual currency trading platform websites that provide transaction services for domestic residents have taken necessary control measures. The next step will be to strengthen monitoring and block in real time.”

Step 2: Purging the Chinese Internet of all ICO-related sites:

“The second is to strengthen the blocking and deleting of new ICO and virtual currency transaction-related websites and public forums. The domestic ICO and virtual currency trading site websites, public forums and the related media and websites that provide support and services for the above activities will be promptly and permanently shut down. On the evening of the 21st, the public accounts of Golden Finance and Coin World were ordered to block all content due to the suspected release of ICO and virtual currency trading information, and the accounts were permanently closed.”

Step 3: Ensure that payment companies are followinn robust KYC procedures.

The third is to continue to strengthen the clean-up and rectification efforts on the payment and settlement side. Third-party payment institutions have been told to strictly avoid business related to virtual currencies such as Bitcoin. Relevant payment institutions have been instructed to strengthen payment channel management, customer identification and risk warnings, establish monitoring and inspection mechanisms, and stop providing payment services for suspicious transactions.

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