Last updated on January 20th, 2022 at 04:54 pm
China announced its latest crackdown on cryptocurrency days back, and since then, the country has been carrying out activities to ensure that the ban holds. This recent ban is a blanket one that covers every crypto-related activity, unlike the last one that focused mainly on mining.
A reason for the ban is that the government has claimed that crypto trading is negatively affecting the economic activities in the country. This is not the first time a ban has been issued. Several orders have been made, but the market continues to operate effectively.
It is believed that a major reason for this ban is to reduce the number of funds that leave the country.
On the other hand, it is believed that the rebellious nature of crypto may also be one of the reasons that it is banned.
With this ban, China has used its Internet firewall to stop residents from having access to major cryptocurrency-related websites, like CoinMarketCap, CoinGecko, as well as TradingView.
As for the effect of the ban, it may not be as effective as the government may want because the Chinese residents have gotten accustomed to the censorship of their government, and have bypassed it through VPN. They may likely do the same thing in this case. Many crypto-related groups on WeChat have been closed, though they were set up on other social media platforms.
As a result of the ban, several crypto trading and exchange platforms have stopped offering their services to those in China. Mobile numbers that are linked to Mainland China can no longer be used on Huobi and Binance. New users in that region are not allowed to sign up, and the exchanges intend to close down the accounts of existing users in the coming months.
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