The Chinese government is set to ban more than 120 offshore cryptocurrency exchanges, as the national crackdown on digital currencies ramps up.
According to a recent report by South China Morning Post, which cites the Shanghai Securities News, a newspaper affiliated with China’s financial regulators, the country has moved to eliminate citizen access to crypto trading platforms. Additionally, domestic websites related to initial coin offerings (ICOs) are being cracked down on and payment services are being barred from accepting cryptocurrencies, including bitcoin.
This news comes just days after WeChat, the popular Chinese messaging app owned by Tencent (TCEHY), reportedly banned cryptocurrency and blockchain-related media outlets from its platform. According to reports, the bans were a direct result of a violation of the ‘Temporary Regulations on the Development and Management of Public Information Services for Instant Messaging Tools’ state rule, which was enacted by the Cyberspace Administration of China on August 7.
The country’s decision to ban cryptocurrency is in spite of its clear interest in the underlying blockchain technology. The Chinese government’s China Electronic Information Industry Development (CCID) department released its fourth round of public blockchain index rankings where South Korea-based EOS (EOS) grabbed the top spot for the third consecutive time.
The market impact seems to be tempered following the latest China activity, which is in stark contrast to outcomes from similar ban announcements in previous years. The AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, is currently up 0.44% over the last 24 hours.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.