Throughout the past times month, traders together with investors in China have criticized the Chinese government's abrupt crackdown on local cryptocurrency exchanges together with trading activities.
What happened?
In September, the Chinese government, People’s Bank of mainland People's Republic of China (PBoC), together with local fiscal authorities imposed a nationwide ban on cryptocurrency trading platforms, shutting down some of the global cryptocurrency central market’s largest trading platforms including OKCoin, Huobi, together with BTCC.
The motive behind the Chinese government’s closure of local cryptocurrency exchanges has non been clarified, but several researchers for the PBoC convey stated that the country’s key banking company considers Bitcoin together with other cryptocurrencies equally threats to the Chinese monetary system.
Supervision strategy?
Last month, inwards an interview with the PBoC’s state-owned finance word publication Sina, Huang Zhen, a researcher at Central University of Finance together with Economics together with PBoC, stated:
“Cryptocurrencies together with other virtual currencies endeavor to challenge the sovereign state's correct to number currency, requiring the nationalization of currency issuance. mainland People's Republic of China has a clear agreement of digital forms of money, together with is actively engaging inwards relevant work. The key banking company has laid a inquiry grouping together with a digital money inquiry institute to explore the digitization of sovereign money. After this circular of virtual money markets supervision, nosotros await nether the auspices of the Chinese key banking company to launch our ain sovereign digital currency equally presently equally possible to aid keep China's leadership inwards the evolution of global digital finance.”
Logically, if the Chinese regime intends to popular off ahead with the strategy of issuing a state-controlled digital currency together with considers Bitcoin as a threat to its fiscal system, the motive behind the regime inwards restricting trading activities to a greater extent than or less Bitcoin together with cryptocurrencies is quite clear.
Or no strategy at all?
But, lately, the Chinese regime has expressed its optimism towards releasing a licensing plan for cryptocurrency exchanges to foreclose cryptocurrency transactions flowing into hush-hush economies together with dark markets.
Such a abrupt shift inwards opinion towards Bitcoin together with the cryptocurrency marketplace has provoked consternation with traders together with investors within the Chinese cryptocurrency community.
Zhang Yanhua, a major Bitcoin investor together with a founder of an investment fund focused inwards cryptocurrencies, stated:
"The authorities don't sympathize anything almost Bitcoin!”
Sun Minjie, some other investor who has of late purchased a large sum of Bitcoin equally a vital business office of its portfolio, told AFP that the Chinese cryptocurrency community together with himself produce non await much from the Chinese regime whatever longer:
"I await goose egg from the government... but the fate of Bitcoin does non depend on the Chinese authorities.”
David Yermack, finance professor at New York University, shared a like thought to most investors together with traders inwards China, emphasizing that the Chinese regime does reckon Bitcoin equally a threat to its fiscal arrangement to a for sure extent. But, such fright towards Bitcoin together with its potential inwards the global finance sector should move considered equally a positive indicator for long-term growth. Yermack said:
"They didn't ban Bitcoin, but banned exchanges from trading for speculative purposes. It has a lot to produce with problems inwards the Chinese fiscal system, that they're worried almost this equally a competitive threat inwards some way."
