Bloomberg News  | Zheping Huang and Olga Kharif | Nov 27, 2019

(Bloomberg) -- China’s latest crypto-crackdown is already claiming its first casualties.

At least five local exchanges have halted operations or announced they will no longer serve domestic users this month, after regulators issued a series of warnings and notices as part of a cleanup of digital currency trading.

China’s stepping up scrutiny of its massive cryptocurrency industry just weeks after President Xi Jinping ignited a market frenzy by declaring Beijing’s support for blockchain technology. Financial watchdogs including the Chinese central bank have in past weeks ordered crypto firms to shutter and warned investors to be wary of digital currencies, seeking to rein in a market prone to excesses. Weibo, a Chinese Twitter suspended accounts operated by major exchange Binance Holdings Ltd. and blockchain platform Tron.

See:  News on China cryptocurrency and more reforms

Taken together, the latest wave of shutdowns and restrictions represent the biggest cleanup of the sector since an initial Chinese clampdown in September 2017. Although exchanges that allow users to buy Bitcoin and Ether with fiat money were banned, trading had remained rampant in China through over-the-counter platforms or services that deal with crypto assets only.

“It appears that, like everything else within their borders, China feels it needs to have tighter controls on the crypto market including exchanges, miners and asset issuers,”

said Katie Talati, head of research at Arca, a Los Angeles-based asset manager that invests in cryptocurrencies.

“I do believe, however, they are moving in a similar direction as Japan and other jurisdictions that have tight and clear regulations for crypto businesses.”

“The current situation and environment for blockchain in China is still very positive,” Tron founder and crypto entrepreneur Justin Sun said. “In the short term, it may not get as much progress as we’d expect.”

See:  Why China is Winning at Blockchain

Here’s a timeline of the recent developments from China that’s been blamed for the plunge:

• On Nov. 13, Binance’s Weibo account was suspended.
• On Nov. 14, the Chinese central bank’s Shanghai office and the city’s financial regulator issued a notice asking local government agencies to work with crypto-related companies under their supervision to exit such businesses immediately. On the same day, Beijing’s financial regulator published a statement warning against illegal exchange operations.
• On Nov. 15, Tron’s Weibo account was frozen.
• On Nov. 21, Shenzhen financial regulator said in a statement it’s looking into allegedly illegal crypto operations, organizing check-ups and gathering evidence.
• On Nov. 21, crypto publication the Block reported Binance’s Shanghai office was shut in a police raid. Binance disputed the report, or that it has fixed offices in China.
• On Nov. 22, the Chinese central bank’s Shanghai branch said in a statement that companies that have conducted publicity campaigns, or have offered other services to offshore crypto exchanges, have been ordered to take immediate corrective actions or exit the business.

Continue to the full article --> here

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!

January 15, 2021

US Crypto: 2020 Year in Review

January 15, 2021

Fintech boom helps Seedrs to ‘record’ £293m crowdfunding in 2020

January 15, 2021

He Created the Web. Now He’s Out to Remake the Digital World.

January 15, 2021

Canadian banks are following in BlackBerry’s footsteps, and that’s not very good news

January 14, 2021

Regulation Crowdfunding Cap moves from $1.07M to $5M on March 15, 2021

January 14, 2021

A New Innovation Mandate for a New Innovation Minister

January 13, 2021

The Rise in Big Tech and Fintech Credit

January 13, 2021

MPs warn buy now, pay later firms ‘could be the next Wonga’

January 12, 2021

Walmart to launch fintech startup with partner Ribbit Capital

January 12, 2021

Digital Ethics Summit 2020 Day One- Lessons to be learnt from 2020