China is taking its last crackdown on digital currency markets as it moves to block all websites, both domestic and foreign associated with crypto trading and Initial Coin Offering (ICOs). Financial News, a newspaper run by the China’s central bank reported that additional regulations are being considered by the authorities.
The state funded news website, ThePaper.cn states that authorities will take regulatory measures against ICOs and cryptocurrencies exchanges, including banning and disposing business and websites associated with virtual currency inside and outside the country to prevent financial risks associated with the industry.
The current to move ban and censor access to crypto currencies will include tight measures as the internet finance association learned that earlier applied measures failed. The authority as other policy makers issued an investor warning on the risks associated with ICO and crypto investments.
Current measures to restrict access to the crypto market will involve constructing a firewall that will prevent domestic investors from accessing international cryptocurrency exchanges. Using the firewall to restrict access to cryptocurrency exchanges comes after investors turned to foreign platforms due to the domestic ban of exchanges.
Japan and Hong Kong are now flooded with Chinese traders as they seek to avoid the country ban, but the report warns investors over overseas transactions and regulatory evasion. To date, China has introduced various regulatory frameworks unfriendly to the crypto market. The measures began as early as January last year and increased over the period.
The report further states that once an organization is found violating the new measures it will be automatically shut
China Regulations Timeline
In the two years, China introduced a number of regulations aimed clamping down on the digital currencies in the country.
The ICO and Crypto-exchanges Ban
In September last year, China’s Central Bank banned all initial coin offerings (ICO) funding and issuing categorizing them as illegal fundraising practices. The Central Bank blamed on the economic and financial disruptive nature of the ICOs.
From a translated report by CCN, the bank stated that:
“Token issuance financing activities should cease immediately. The organizations and individuals who have completed the financing of tokens should make arrangements for repatriation and so on, reasonably protect the interests and properly handle the risks.”
Crypto-related exchanges were also affected by the ban as the authorities tried to clamp down cryptocurrencies in the country.s
China has banned all crypto related to the ads disappeared on the Baidu, Chinese search engine and social media platform weibo. The ban involves surrounds paid content as they didn’t reflect together with the organic results when bitcoin, cryptocurrency and ICOs were searched in Chinese.
The mining Regulation
Chinas Internet Regulatory agency had indicated that it will start reducing the number of crypto-mining companies in the country. They currently account for 70% of the world mining activities in the world. Notable mining companies have started to reduce their mining operations in the country with some moving to crypto-friendlier countries such as Switzerland and Canada.