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China nullified the circulation of cryptos, prohibited foreign platforms as well

Feb 06, 2018 Posted /  2419 Views

China nullified the circulation of cryptos, prohibited foreign platforms as well

As published in a People’s Bank of China affiliated newspaper, Financial news stated that China will eradicate all virtual tokens related platforms in order to avoid financial risks.

As per the article, the prohibition of dealing in cryptos and domestic platform could not successfully eliminate circulation of virtual currency from China as people turned towards international platforms to solve their purpose which further added the risk of fraud and pyramid selling. To stave off the usage of digital currency the advertisements related to cryptocurrency have also stopped appearing on Baidu and Weibo, China’s renowned search engine and social media platform respectively. As per the South China Morning Post news site, when “bitcoins”, “Cryptocurrency” and “ICO” was searched on Baidu and Weibo no paid sponsored content was found except organic content.

In a similar way, Facebook also banned the occurrence of advertisement related to virtual currency which was favored by many people with a point that anyone who gets convinced to buy bitcoins through Facebook will not conduct quality research and thus end up making a huge loss in some scam.

In an interview with SCMP a trader of cryptocurrencies, Donald Zhao told that it was an obvious move that people would shift from domestic platform to international platform for trading purpose. He himself moved from Beijing to Tokyo because of Ban. He further added that people changing their platforms for trading purpose shows that it would be difficult to ban virtual currency completely as people have invested in related businesses.

Another Trader, Wayne Gao shared his views that such tough regulations by sovereign governments like China will have a negative impact on cryptocurrency and also hit the investor’s interest badly.

The bitcoin showed its high volatile nature when its price dropped to $8,000 USD in November of last year and then an unexpected rise followed by another fall.

China had banned the circulation of cryptocurrency in the month of September of 2017, but individuals did not stop there resulting in the relocation of many businessmen and investors to hong kong and Japan.

To this the executive director of Cathay Capital, Ace Yang commented in an interview that people shifting from China to other parts of the world favoring virtual currency is a good news for Singapore and Japan as the demand of participants is high and traders got a new place with favoring environment.

The Public Bank Of China ordered the financial institutes to further tighten up the security and also to stop funding all activities related to cryptocurrency.

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Tags: cryptocurrency ico bitcoins virtual currency virtual tokens

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