China Has No Intention to Reduce the Crypto Crackdown

China Has No Intention to Reduce the Crypto Crackdown

The bitcoin ecosystem in China is now in disarray. The country’s politicians intend to maintain their assault on cryptocurrency trading and speculation. In reality, the People’s Bank of China [PBoC] stated that it will maintain market pressure, citing “illicit activities” as the cause for its action while simultaneously praising its strong crackdown this year.

The country’s central bank stated in an official statement that it wants to mitigate potential financial risks and minimize the number of high-risk financial platforms in key regions. The People’s Bank of China reaffirmed that its monetary policy will be flexible, targeted, reasonable. And appropriate and that it will implement a good “cross-cyclical” policy design.

The bank also stated that it is working to speed up the process of drafting a financial stability law. This follows Deputy Governor Liu Guiping’s prior suggestion, which was made public in March. The news comes just one day after Chinese authorities convened to discuss work goals for the second half of 2021.

China’s crackdown is a boon to the worldwide Bitcoin mining industry

After Bitcoin’s huge Bull Run above $60K, which saw other altcoins post massive gains and soar up to levels never seen before. The Chinese officials initiated an aggressive crackdown on crypto trading and mining. This was enough to raise authorities’ suspicions about fraud, money laundering, and excessive energy consumption. Over the last few months. China’s officials have imposed a slew of regulatory steps aimed at monopolistic behavior at well-known online payment providers like Ant Group Co.

Furthermore, the succession of crackdowns hurt China’s mining industry. According to numerous sources, at least eight Chinese Bitcoin mining companies are reportedly considering moving their operations to Paraguay. This comes only weeks after Juanjo Benitez Rickmann. The CEO of Paraguay-based mining platform Digital Assets S.A. served as an advisor to a recent Bitcoin bill aimed at regulating miners in the South American country and attracting foreign investment.

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