China hints at another potential Bitcoin ban amid furtive trading concerns
- On March 1, China’s Inner Mongolia announced a ban on cryptocurrency mining.
- Bitcoin’s recent surge has significantly increased unregulated trading in China.
- Back in 2017, China shut down cryptocurrency exchanges.
Once again, China seems to be on the verge of another potential Bitcoin ban. On March 1, the autonomous region of Inner Mongolia announced the ban of cryptocurrency mining and its intention to stop all projects by April this year.
This region is great for mining because it is extremely cheap, but has also recently banned new digital coin projects. The main idea behind the ban is to cut emissions but has revived old fears of another clampdown on crypto.
Will China follow suit?
Furtive Bitcoin trading in China has significantly increased again which has sparked fears of another potential ban. According to sources from Reuters, many Chinese individuals are moving capital overseas to obtain USDT disguised as purchases of medicine.
However, Huang Mengqi, a lawyer at the Beijing Law Firm stated:
You cannot stop people from trading bitcoin, because Chinese law recognises the value of virtual assets. Anything with value should be allowed to change hands.
Since many Chinese investors are using exchanges outside of China, the China Securities Regulatory Commission (CSRC) has a tough time finding enough information to enforce anti-money laundering efforts.
Back in 2017, almost 100% of all Bitcoin trading was against the yuan, but even today, China’s influence over cryptocurrencies remains high.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
