A few days back, the People’s Congress in China passed the cryptographic law and it is all set to come in effect starting January 2020. The Chinese president, Xi Jinping also in an organized study session lauded blockchain and said that the communist party should tap blockchain for technological advancement.
Well, this was taken as a hint by crypto enthusiasts that China may soon warm up to crypto. However, certain developments have indeed raised the question if China will actually allow cryptos. A recent order in Shanghai to inspect all local crypto exchanges and China’s crackdown on social media platform Weibo, prohibiting the publishing of any posts using “Blockchain and Crypto Trading” at the same time has once again given birth to speculations if or not China will allow cryptos. Another interesting case is that China planning to reward its soldiers in cryptos. Let us have a look at the cryptocurrency scenario in China.
Shanghai Regulators To Inspect Local Crypto Exchanges
Shanghai Regulators have been ordered to probe all local crypto exchange-related services before the 22nd of November. Subsequently, the regulators need to report to the central bank and take further actions. The effort is being directed by the Shanghai government’s finance bureau.
While crypto enthusiasts were earlier hopeful that China may soon uplift its crypto ban, the situation looks far from realization. Two years back, the government had banned crypto-to-fiat trading and initial coin offerings (ICOs). However, crypto-to-crypto trading remained accessible.
The notice further mentions that the regulators need to look out for any entity that is organizing virtual currency trading activities inside China, or ICOs using a blockchain. Furthermore, promotional and brokerage services inside China for ICO projects that are registered outside of the country also fall under the inspection scope of the local financial regulators.
Interestingly, the Shanghai government’s notice also comes at a time when some exchanges are expanding their local presence to tap into the Chinese market. As reported by Coingape, Binance, recently rolled out peer-to-peer trading on its platform that enables users to buy or sell cryptocurrencies using Chinese yuan through bank wires, AliPay or WeChat.
No Publishing of Posts Containing “Blockchain & Crypto Trading”
Recently, China’s social media platform, Weibo has banned users from publishing any posts which simultaneously use “blockchain” and “crypto trading” at the same time. Per the platform, the use of the aforementioned words violates Weibo’s community terms. While it is not yet clear, that when exactly, was the restriction put in place, users can use the terms but separately.
Cryptocurrency Reward For Chinese Soldiers
In China, cryptocurrency is being discussed as a new means of reward for soldiers who have done a job well. The official newspaper of the People’s Liberation Army, PLA Daily, is suggesting that the country’s soldiers be rewarded in cryptocurrency, should the blockchain technology become successful in the country.
Interestingly, cryptocurrency is being delved upon as a new means to reward the outstanding performance of crypto soldiers. As reported by the official newspaper of the People’s Liberation Army, a system has been proposed. It says that blockchain-based tokens be given to soldiers scoring high marks from teachers in their training period. Furthermore, soldiers can also gain crypto rewards when they complete certain tasks or excel in their field.
On one hand, a probe is sought for crypto exchanges, while on the other hand, crypto prizes are thought of. The case makes for an amusing instance.
Will China eventually warm up to crypto? Let us know, what you think in the comments below!
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Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.