China Move to Ban Crypto Completely – Latest Wave of Regulation Includes Foreign ICOs and Currencies
China’s tough stance on crypto has escalated significantly. In an effort to complete wipe out any trace of the cryptocurrency market in the famously tightly-regulated nation, the South China morning post reported today (February 5th) that a complete ban on foreign platforms and ICO websites will come into play.
What Impact Will This Have?
This is the latest in a series of moves from the Chinese government, and it is already taking effect in the nation. Baidu, the country’s largest search engine, have already removed page listings related to ICOs, and Weibo – the Chinese Facebook – have swiftly followed suit. This follows an order from two weeks ago from the People’s Bank of China, which stated that all investment firms were to cease crypto-related investments. Now though, all options would appear to have been exhausted, as this latest demand effectively bans any trace of crypto in China.
This will surely have an impact. China tends to rely on a large amount of self-funding for large projects, so any ICO that a Chinese firm had previously released abroad would have been heavily reliant on other Chinese investment. However, it will now be incredibly difficult to circumvent Beijing by simply moving these deals offshore, and companies and specific individuals would risk arrest. This will undoubtedly have a negative effect on the crypto industry as a whole.
However, there will still be some who spend extra money in order to get around these regulations. Hong Kong is the most likely beneficiary of this extra business, with Japan also a very real possibility. It may well be that certain companies are able to hide behind the anonymity that blockchain technology offers, thus providing a boost to these country’s markets. However, the overall impact on the global crypto market will undoubtedly be a net negative.
Amid all this, Bitcoin’s price continues to fall towards the $7000 mark and possibly below. While investors will be looking for the chance to buy cheap, there will also be the hope for some good news waiting on the horizon, as negative publicity and tighter regulations from the international community draw in.