Cryptocurrency Thriving in China Despite Restrictive Policies

Cryptocurrency Thriving in China Despite Restrictive Policies

As things stand at the moment, it is not legal in China to hold an ICO or to trade cryptocurrency at an exchange. Chinese Bitcoin mining companies, long responsible for producing the vast majority of the world’s bitcoins, have been told to leave the country.

This year the national firewall was extended to stop Chinese citizens from using overseas cryptocurrency exchanges, and the central bank ordered financial institutions to stop providing funding to any activity related to cryptocurrency.

As of now it is legal to hold cryptocurrency, but making any transactions with it is not.

The former governor of the central bank once said of cryptocurrency: “We think that we need to be more cautious in this direction, because this doesn’t serve our goals that financial products shall serve the real economy.” When he said the real economy, he meant the Chinese economy – the government isn’t interested in money, digital or otherwise, leaving the country behind its back. At the same time, the booming blockchain sector shows that the Chinese government is interested in blockchain technology and cryptocurrency – but on its terms only.

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