China Bolsters Its Stance Against Crypto

China has formally expressed its opposition to the rise of cryptocurrencies. In a recent detailed economic statement, the Middle Kingdom reaffirmed this stance and announced its determination to toughen its position on the matter.

Chinese Authorities Determined to Curb the Crypto Industry

On Saturday, October 21, the Governor of the People’s Bank of China, Pan Gongsheng, commented on crypto activities. These activities are not welcomed in the country, and this policy is not going to change anytime soon.

This is the position that China has decided to adopt, and it is even hardening its strategy on the matter. A detailed statement presented by Chinese economic authorities reveals that the Asian giant is resolute against speculative activities related to cryptocurrencies.

However, the country does not plan to stop there. In fact, China aims to conduct a rigorous campaign against illegal fundraising and money laundering in the digital asset sector.

This repressive policy, decided by Beijing, has one clear objective: to strengthen the financial stability and economic security of the country, which the Chinese authorities believe cryptocurrencies are impeding.

In essence, Governor Pan Gongsheng’s statements reflect China’s unwavering commitment to ensuring the legality and security of its financial sector, especially in the field of cryptocurrencies.

You should know by now whatever China bans is a ___ right? $btc https://t.co/GwE961bi0P

— orbitant (@orbitant) October 21, 2023

Is It an Escalation?

It’s worth noting that these statements by the Governor of the People’s Bank of China come at a specific time. A context marked by an intensification of repressive measures against crypto firms.

These measures mainly affect miners and exchanges, two vital segments of the crypto ecosystem deemed illegal by Chinese regulatory authorities. This position has been taken by the state since 2017 when it banned domestic crypto exchanges.

Despite this prohibition, Chinese investors continue to engage with cryptocurrencies. They do so through foreign platforms or, failing that, through peer-to-peer transactions.

In conclusion, China’s toughening stance on cryptos could be seen as an escalation. As seen, its expressed will to mitigate financial risks and combat illegal activities does not dampen investors’ enthusiasm for these assets.

Recently, there was a hint of a potential change in the situation when a Chinese court recognized cryptocurrencies as legal property. It might take some time to see real positive changes in this regard.