China Central Bank Issues Detailed Crypto Crackdown Guidelines, Crypto Market Turns Red

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People’s Bank of China (PBoC) issued a fresh set of detailed crypto crackdown guidelines today even when many were assured that we are past China crypto ban FUD. The new set of guidelines seems to be quite comprehensive and prohibits every aspect associated with cryptocurrencies. The Chinese central bank deemed crypto illegal and claimed it to be a highly speculative market. The guidelines were issued on three main points that include,

  • Prevention of crypto mining
  • Prevention of crypto trading
  • Bars Foreign crypto exchanges from offering services to Chinese customers

What makes these guidelines significant is the fact that they came directly from the central bank whereas most of the crackdowns in April-May came from different provinces. The documents are also quite detailed and cover every aspect to leave no margin for loopholes. For example, earlier only fiat to crypto was illegal but now any form of crypto trading has been deemed illegal and any native firms found offering technical assistance to foreign exchanges would be held accountable too.

Crypto Mining and Trading Crackdown

The Chinese Central bank noted that

crypto mining requires high energy consumption and carbon emissions, low contribution to the economy, and also brings risks derived from the transaction. The documents warned that mining is an eliminated industry and prohibits investment.

The document instructs authorities of “strict monitoring, strict prevention of risks, prohibition of increments, and proper disposal of existing mining farms.” The Central Bank also increased the electricity rate by $0.05 per kilowatt-hour to discourage any small or secret mining farms. The Chinese Central Bank also said they would strengthen the management of information around cryptocurrencies on the internet.

The Chinese Central Bank also warned foreign crypto exchanges from offering any kind of trading services in mainland China since it’s an illegal asset in the country.

Crypto Market Dumps, Chinese Journalist Claims its FUD

The China crypto crackdown in the past has lead to multi-billion dollar market sell-off in May and the latest set of stricter crypto crackdown policy from the PBOC could lead to similar market mishap. The crypto market started to dump on the news of Chinese crackdown and even though the market was in green earlier today, its currently experincing a bloodbath.

Source: Coin360

As the whole crypto market started to turn red, another prominent Chinese crypto insider platform claimed it to be a FUD. The Twitter handle Molly claimed the reported PBOC crypto crackdown documents are from mid-September and were released in on September 15 and being recircualted now.

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Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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