Posted 1 year ago | by Ben Armstrong

Chinese Crypto Authorities Toughen Regulations Despite President’s Positive Remarks on Blockchain

Chinese crypto authorities continue to toughen regulations on cryptocurrency and Blockchain technologies despite the recent positive remarks on the said technologies by President Xi Jinping.

Speaking at the 18th collective study of the Political Bureau of the Central Committee earlier this month, the President remarked:

“We must take Blockchain as an important breakthrough for independent innovation of core technologies.”

These remarks were viewed by many as the spark that the Chinese cryptocurrency sector needed to create a friendly crypto-environment in the country. The remarks instead lead to a series of crackdowns by local crypto-regulators targeting a host of Blockchain and crypto-themed events, projects, and media, just to name a few.

Within an hour of the President’s speech, the price of Bitcoin had risen by close to 30 percent but the turn of events has dealt it a huge blow and the price has dipped to a six-month low trading below $7,000 at the time of reporting.

Crypto exchange shuts down

It is reported that the move to tighten crypto regulations saw major Chinese crypto-exchange guru, Binance, shut down its offices in Shanghai. A report by crypto news site, The Block, read that Binance had shut down its operations in Shanghai.

The report was initially denied by Binance’s CEO Chanpeng Zhao but days later a Shanghai local broadcast station reaffirmed the claim that BInance’s office in Shanghai was shutdown and went on to further add that their office space was used by developers and some outsourced customer service staff.

Crypto-Related Events

A host of crypto-related events that had been scheduled to take place in the coming weeks have also been either scaled down or canceled.

This was according to event organizers who have been speaking on condition of anonymity. “The wave of cancellations was due to either safety concerns or venue related issues,” commented one of the organizers.

At the time of writing, venue providers reportedly declined to collaborate with crypto event organizers following the reports of the crackdown despite the fact that the events were to discuss Blockchain technology and crypto economics generally.

It remains to be seen how the turn of events will pan out, but it has without doubt dampened and partly crippled the cryptocurrency sector in China. So far China has sent some major mixed messages to the world about how it views tokens, and it will be the one to lose out if it inhibits the adoption of cryptos as money.