China Bitcoin Plot Thickens
Another episode in the uphill battle of Chinese regulators against offshore exchanges is bound to ripple through the crypto ecosystem.
AGAIN.
The finance watchdog identified 124 offshore crypto exchanges.
The authorities prepare to initiate the associated IPs ban process, according to Hong Kong-based South China Morning Post newspaper.
The idea is that if the mainland investors cannot access the exchanges without jumping through some hoops, maybe they won’t.
Pretty simple logic, but it proved to be effective before.
Especially if the average “consumer” is not sophisticated enough when it comes to employing circumventing techniques.
The government aims to protect whoever needs protecting against losses (or gains) they cannot possibly control.
The agency is expected to screen local websites that are affiliated with the blacklisted exchanges. All WeChat messaging accounts fall under scrutiny, also. Getting involved or promoting crypto trading or ICOs becomes a big no-no in the average Chinese crypto enthusiast's book.
Even though China hosts the largest bitcoin mining firms (Bitmain, Canaan Creative, eBang), this recent crackdown is in line with the general policy that is designed to monitor, limit and prevent the commercial use of cryptocurrency inside China.
Despite the fact that the state controls its fiat currency pretty tightly, their central bank has major difficulties in controlling the money outflows. When an important part of that phenomenon is cryptocurrency related, the next logical step is to control that channel.
Major exchanges like Binance, Huobi, OKEx, Bitfinex, continue to be inaccessible from mainland China since the beginning of 2018.
Blockchain focused media channels who raised millions of dollars were forced to power down.
Hotels, office buildings, shopping malls are banned from promoting or hosting events related to cryptocurrencies or digital assets.
We're talking 1.4 billion people market no one can ignore here.
Not one single industry can ignore the potential of a 1.4 billion people market.
Sure, an investment fund here or a bank partnership there are nice, but for something to fly we need true power.
Mass adoption is key.
Speculation makes some people richer and some people poorer.
Transferring value from the poor to the rich is an old story cruptocurrencies were supposed to change.
Fiat currencies are strong because people are using them.
No people - no use - no value.
Waiting for better news from other markets?!
After the recent SEC fumbles, we may need to wait a little longer.
That’s not to say the crypto space is not an interesting one.
Every day there's something new to learn about.
Every sunrise may bring the next big thing.
Just do not bet the farm on anything that may catch your eye.
