All attention is on bitcoin today as its price continues to slump, returning to November lows. There are numerous reasons for the sharp decline of bitcoin, including Facebook’s ban on cryptocurrency ads and India’s announcement that bitcoin will not be considered legal tender. This week also kicked off with less than pleasant news for bitcoin: in another act of regulation, China has announced that it will block all access to websites related to cryptocurrency trading – including foreign exchanges.
The South China Morning Post reported on the recent developments:
“To prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs.”
In addition to blocking foreign exchanges, China introduced a ban on ads with the terms “bitcoin”, “cryptocurrency”, and “ICO”. The ban seems to have already gone into full effect, as ads related to crypto have disappeared from both social media and search engine results. While these measures make seem surprising, regulation in China is nothing new. Last September, the Chinese government banned ICOs, forcing successful projects to refund previous investments. A few months later, in January, there was a clamp down on bitcoin miners.
Although China’s latest regulation may come across as harsh, it’s speculated the government is simply trying to act in the best interests of its people, considering that many ICOs have proven fradulent in the past. Unfortunately, these regulations are bound to have a negative effect on the crypo market.
