China Moves to Block 124 Global Crypto Exchanges

The Chinese government is still taking a hard line against offshore cryptocurrency exchanges. In order to limit mainland investors’ ability to trade cryptocurrencies through these types of exchanges, the China National Fintech Risk Rectification Office – Beijing’s internet finance watchdog – has earmarked 124 offshore crypto exchanges. According to a report by the South China Morning Post, the authorities will shortly begin the process of blacklisting these services that are still active in China’s Internet Protocol (IP) address. The government agency strives to safeguard investors and participants from financial risk associated with bitcoin trading and peer-to-peer lending.

Furthermore, the agency will continue to examine local websites linked with the relevant crypto exchanges. Official accounts on China’s most popular WeChat messaging app will also be reviewed for any connection or promotion of cryptocurrency trading and ICOs services.

China has recently been taking more preventative measures in order to stop the commercial use of cryptocurrency. This is done by monitoring firms such as Bitmain, Canaan Creative, and Ebang—which are all largebitcoin mining companies that have planned billion-dollar IPOs.

China has seen a substantial reduction in the number of cryptocurrency trading platforms. After several years of growth and vibrancy, China’s cryptocurrency market is now facing extreme difficulties as regulators implement policies to manage the unchecked, uncontrolled rise of digital assets. According to Pan Gongsheng, a deputy governor at the People’s Bank of China, “Over 80 percent” of bitcoin trading and ICO funding would occur in China.

While the state has a tight grip on its fiat currency, the yuan, the People’s Bank of China (PBOC) has struggled to keep money outflows in check as investors seek more diversification beyond the country’s currency. In an effort to tighten their grip, PBOC banned cryptocurrency trading and ICOs last September, citing fraud prevention and customer protection. The ability to access many major exchanges including Binance, Huobi, OKEx, and Bitfinex has been cut off in China since January this year. The authorities recently shut down eight blockchain-related online media outlets, several of which were able to amass millions of dollars in funds. A few areas, such as Chaoyang, have also prohibited hotels, office buildings, and shopping malls from hosting crypto events.

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