China and crackdown against cryptocurrency have become a quite common combination over the past three to four months. The country which was one of the top contributors to the mining operations has now quashed the mining activities to their roots.
In a recent development, the current ruling elite has decided to add cryptocurrency mining to a negative list of industries. Despite the fact that China has released multiple other industries from the negative list, however, the country has added crypto mining into that list. Which means investing or carrying out mining activities are not just illegal but also strictly prohibited and punishable act.
The negative list includes the sectors which are off-limits not for the domestic Chinese investors but also for the international foreign investors. The country-imposed ban on the crypto trading and mining activities by the star of this year. The followed by the Chinese Central Bank’s statement to Purge the illegal crypto currency activities. Though, the Chinese Central Bank later on announced to launch its own native digital currency.
Moreover, the crackdown has also cut all the connections between exchanges and local Chinese. Moreover, the country is also regulating people’s behavior towards the crypto industry. The country has also imposed a ban on media regarding advertising about crypto. The security institutes have stated that they will not allow any sort of public involvement in polluting society.
The government has also asked mobile users and networks to stop spreading rumors about crypto. Moreover, all the newspapers and online digital magazines can not write an article about crypto. Writing any headline about crypto is illegal in the country. It has been said by the local Chinese Authorities that crypto-related activities are meant to exploit the consumer market. Digital tokens can be used for terror funding and other unethical activities.
The Chinese government’s official statement has said that crypto activities have not just endangered the country’s monetary system, but it also caused economic irregularities. People’s money was at stake. However, the country has decided to support the digital economy. The People’s Bank of China is launching its own digital currency. The state planner has said that all those investors willing to invest in the digital economy would be able to invest in the country’s native digital token once the coin is ready.
The state planner has also said that the increased level of mining activities was hazardous for the country’s energy sector as well. There were multiple sectors that have left the government with no other option than to ban the whole crypto sector in China. However, the recent incident of putting crypto to a “negative list” might be proven as the last mail in the coffin.