A total of 124 websites operating cryptocurrency exchanges offshore will soon have to move their operations elsewhere as Chinese government intensifies its crackdown against digital currencies amid concerns of financial volatility it may bring to the local economy.
China has started its clampdown of cryptocurrencies in September of 2017. The government blocked a total of 85 initial coin offerings projects at the time. The yuan-bitcoin trading has continuously plunged 90 percent less due to local crackdown according to the South China Morning post citing Shanghai Securities News.
Reports were not clear on when the new ban against the 124 websites takes effect but authorities showed indications that they will soon be after local cryptocurrency currency websites and local ICO operations. Information was coming from people who have direct contact with the Leading Group of Internet Financial Risks Remediation according to the South China Morning Post. The group was set up by Chinese cabinet in 2016. It is headed by Pan Gongsheng, a deputy governor of the People's Bank of China.
The central bank has yet to deny or confirm reports on the crackdown as of press time.
The latest move comes after the closing of at least eight online news sites that feature information and developments about blockchain and other digital currencies. Specifically, these news websites were blocked from WeChat on grounds of violating China's internet supervisory body.
China's concentrated effort to abolish digital currencies goes beyond the internet. On the country's capital, the government has reportedly prohibited hotels, venues, and shopping malls to accommodate events that will promote cryptocurrencies to people. The government asserts that such activities are illegal fundraising channels.
Meanwhile, a report from Bitcoin News claimed that there is a notable jump in peer-to-peer cryptocurrency lending in China amid strict regulations. The information is reportedly coming from insiders of the cryptocurrency industry that have spoken with Sohu, a local news outlet. The report said the increase in engagement is highly notable with Bitcoin and Ethereum. A source allegedly said that despite the government's call to halt cryptocurrency dealings, the market perseveres.
Elsewhere in the world, crackdowns on cryptocurrency trading are also gaining grounds. Britain's Financial Conduct Authority last week has warned about investment scams that fraudulently use celebrities and misrepresenting upmarket London addresses to lure innocent cryptocurrency buyers. The U.K. watchdog stressed that victims may unlikely recover their investments since cryptocurrencies are unregulated by the government, Reuters reported.
Earlier this week, police arrested Divyesh Darji, the alleged leader of BitConnect which authorities suspected to be involved in illegal multi-level investment practices. Darji was arrested at Delhi airport on Aug. 19. Authorities in Texas and North Carolina found BitConnect to be guilty of breaching securities laws.
