Some cryptocurrency holders in China and Hong Kong have tried to find a way to protect bitcoin and other cryptocurrencies after China’s central bank released a new document on Friday outlining tougher measures in the broader cryptocurrency crackdown, including tightened regulations to monitor cryptocurrency transactions.
“Since the announcement by the Chinese central bank, in less than two hours, I’ve already received more than a dozen messages – email, phone and encrypted apps – from Chinese cryptocurrency holders, “said David Lesperance, a Toronto-based attorney who specializes in wealth transfer to tax havens who are looking for solutions on how to access and secure their cryptocurrencies on cold stock exchanges and wallets.
Lisperance added that the move was an attempt to freeze cryptocurrencies owned by the rich, in so that the regulators could not legally do anything with them.
“I have been anticipating this for a while as part of the Chinese government’s moves to shut down all potential competition for the next digital yuan,” he said.
This happens after the People’s Bank of China revealed on its website Friday that all cryptocurrency-related transactions in China are illegal, including services provided by foreign exchanges. It has also completely banned services that provide agreements, clearing and issuing of assets and derivatives for virtual currencies.
Lisperance says some of its customers are also concerned about their safety.
In 2013, the state ordered third-party payment providers to stop using Bitcoin. The Chinese authorities have stopped selling token in 2017 and promised to continue targeting cryptocurrency exchanges in 2019. At the start of quest’year, China’s removal of the cryptocurrency mining industry shut down half of the global Bitcoin network for a few months.
London-based fintech data analyst Boaz Soprado said: “The CBE warning is not entirely new and it is not a change of policy.”
But this time around, the cryptocurrency announcement covers 10 agencies, including key departments like the Supreme People’s Court, the Supreme People’s Procuratorate, and the Ministry of Public Security. in a demonstration of greater unity among the country’s top officials. The State Foreign Exchange Administration was also involved, which could be a sign of enforcement in this field could increase.
Mark Peking, CEO of Bespoke Growth Partners, said: “So far, Chinese investors have largely avoided the ban by separating transactions, using local OTC platforms or, increasingly, overseas outlets, to reach an agreement on a commercial price. then using banks or fintech platforms to convert the yuan in a liquidation “.
But since the People’s Bank of China improves its ability to monitor crypto transactions, this workaround used by Chinese investors will gradually become a tight tunnel.
“The persistent joke in cryptocurrency is that China has banned cryptocurrencies hundreds of times,” Soprado said. “I’d be willing to bet people will trade bitcoin in China in a year “.
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