China’s central bank claim that it has successfully operated it’s crackdown against crypto currency. According to reports of State media and People’s bank of China, less than one percent of all Bitcoin trades involve Chinese currency.
In September 2017, Renminbi-to-Bitcoin trades made up over 90 percent. Now, it’s less than one percent. So how did that happen? Apparently, Govt didn’t like Bitcoin trading and took every measure to stop the cryptocurrency purchases. They even imposed travel ban on China’s two largest crypto currency exchange companies – OkCoin and Houbi.
It wasn’t just the big names facing government of China’s policies but small exchanges and initial coin offerings also have to cease their operations since. There were 85 initial coin offerings (ICOs) – accounting for virtually the cryptocurrency services sector in China but now there is no such service available for local trading.
Huobi moved its offices from china to Singapore which is more crypto-friendly country, while OkCoin rebranded as OKEx, and started its operations from Malta which is now blockchain-positive paradise.
Binance also got legal notices from Govt to cease its operations in both China and Japan.
China refer Initial coin offering (ICOs) as “Illegal Public Finance Mechanism”. China’s main concern about ICOs is its suitability for money laundering and the illegal issuance of securities. After government threw back on exchange offices offering such virtual services have returned almost a billion dollars of Chinese investors who contributed to the 43 local ICOs, which is almost 90 percent of all investment made in last year.
Despite of the ban, many continue to operate their services in cryptocurrency from offshore exchanges and people were still involve in Bitcoin trading until in February, Chinese government banned its citizens from any activity related to trade and exchange of cryptocurrency. It has blacklist dozens of exchanges involve in such operations since then.
In January, Bloomberg reported that Bitman had moved its regional head office from china to Singapore and still facilitating Chinese people to trade and exchange of Bitcoin. Although cryptocurrency activity is mainly performed from Hong Kong, more adventures Chinese investors are using oversees desks, smuggling Bitcoin back to homeland, via private chat channels to sell locally.
Now, in 2018, after government has successfully enforced ban, all major players are no longer in china and looking for new crypto-mining areas in Europe and America. Most of these have very large crypto-mines in USA and Canada.
In April, police stormed a large-scale Bitcoin mining operation in the city of Tianjin. 600 computers were confiscated in the raid. Xinhua reports it as “the largest power theft case in recent years,”
The government seem to adopt any desperate measure to eradicate cryptocurrency trading activity from China, while on the other hand its own National Audit Office is preparing to improve its data infrastructure by using blockchain technology and a national standardization committee is being formed by their Ministry of Industry and Information Technology.
Jihan Wu, Bitman’s cofounder is still about how government is enforcing its new policies related to cryptocurrency activities. While giving an interview at Forbes, he choose to stay silent when asked about China’s regulations and call it as ‘sensitive’ matter.
With Bitman now estimated at $9 billion, it may be wise thing to go with the flow in today’s treacherous regulatory environment. Even the new de-facto homes for mining entrepreneurs are being filled to the brim. Canada’s largest crypto-mining utility, Hydro Quebec, reported it was unable to meet demand in the wake of the mass-exodus.