The Chinese cryptocurrency attack is increasing in its severity and has extended beyond the capital to the Guangzhou Development District. The district is a special economic zone near Hong Kong. An almost identical ban was observed in Beijing in late August. A notice of the ban was issued on August 24th indicating that it was necessary to – “maintain the security and stability of the financial system.”
A coordinated Chinese cryptocurrency attack
China has been notorious for their crackdown on all things cryptocurrency-related. They have banned ICOs and exchanges. Before the crackdowns, China was by far the world leader in BTC trade volume, and now these exchanges have moved to friendlier regions.
On August 24th, the same day that five government agencies – the People’s Bank of China, the Banking Regulatory Commission, the Central Cyberspace Affairs Commission, the Ministry of Public Security, and the State Administration for Market Regulation – decried the issues with ICO investment and the dangers of cryptocurrencies, tech conglomerate Tencent eliminated cryptocurrency payments.
On August 21st, the Wechat messaging application with over a billion users started closing down established accounts that provided information on cryptocurrency. In typical Chinese fashion, no reasons were given for the closures by the company. Wechat no longer facilitates cryptocurrency transactions on its platform.
Cryptocurrency – China’s number one enemy
In sharp contrast to China’s neighbor Japan, possibly the world’s most friendly crypto region, China is easily the most hostile towards cryptocurrencies. There could be said to be an inverse proportion to the level of totalitarian control in a country and its hostility towards cryptocurrencies. China, with its emphasis on internet censorship and managed history, is under threat more than any other country, though India is also doing its best with its war on cash and cryptocurrency suppression.
While even Western states are going to crumble or morph into something completely different, they have a degree of flexibility to accommodate the rise of decentralized currencies. China does not have this flexibility, and the regime has gone all in with its cryptocurrency attack, which will most likely hasten its demise. What they are currently trying to do is create their own cryptocurrency, which would give them even more control if linked to personal identity.
This is not to say that Western states are by any means perfect. It’s just that comparatively speaking, cryptocurrency is a more immediate threat to the way that Chinese bureaucracy is built, upon the open limitation of freedom in a surveillance state. The principles of decentralized currencies are directly opposed to how China is run and managed. Those who say that this is the case in the USA should visit China.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.