Even more Chinese crypto regulations on the way?

23 Aug, 2018
by David Robb
Even more Chinese crypto regulations on the way?

The last few days have seen a renewed crackdown on cryptocurrencies and ICOs in China. A representative for the country's People's Bank has now stated that even more regulations should come in the near future.

Sheng Songcheng told Caixin that crypto trading and ICOs will likely be subject to even tighter control soon: "authorities will step up their oversight of those who use virtual currencies to conduct illegal activities in accordance with existing laws."

As with most national crypto regulations, the protection of investors and businesses and the prevention of "bad money" driving out "good" is what is motivating these rulings, with fraudulent ICOs apparently one of the major concerns for the People's Bank.

"There is a greater potential risk of laissez-faire development without supervision", Sheng said. "A large number of projects without promising futures are even deceiving themselves...greater risk may emerge if we don’t put a lid on it. A large number of crypto scams would entail a great economic loss".

In the last few days, China has shut down ICO and cryptocurrency channels on popular messaging app WeChat, as well as banning venues from hosting crypto-based events. Efforts have also been made to block access to 124 different online crypto exchanges.

Read more: Reports suggest China is taking steps to ban crypto media channelsBeijing prohibits public venues from hosting crypto eventsChina to block internet access to 124 exchanges, cracking down on crypto

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