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China to further crackdown on Bitcoin and cryptocurrencies to eliminate speculation

Bad news awaits the Chinese blockchain community as regulators in the country expect to announce a further crackdown on Bitcoin and cryptocurrencies to stamp out speculation in the crypto market.

If rumors going around are to believed, there will be further policy tightening that could make the Asian country the most hostile ground for Bitcoin and cryptocurrencies. Already a number of Wechat blockchain groups have been closed down.

One good example is the voluntary closure of popular Wechat group “3 am Sleepless Wechat Group” that was widely recognized that happened last night at around midnight.

The people in charge of running the group have since largely maintained silence except for the odd comment of “you will all know in a few days.”  The group was synonymous with discussions on Bitcoin and cryptocurrencies.

In a separate incident, there have been screenshots doing rounds on Telegram that indicate the people’s bank of China is set to make major policy announcements that aim to further restrict Bitcoin and cryptocurrencies in China.

It’s believed the announcement will happen on March 15th, when the annual festival for consumers in China takes place. The day has also come to be renowned for exposing scandalous commercial activities and new policy announcement.

It hasn’t become clear what the new policies will be all about since the country has already banned ICOs and cryptocurrencies.  One move that can be anticipated is the banning of the mining operation in China and already there have been signs of this.

This has prompted Chinese miners to change locations with many moving their operations overseas. Also, Huobi, a popular Bitcoin exchange has already begun moving its remaining staff from China to Singapore. The exchange has customers from over 130 countries around the globe and has daily trading volumes of close to $1Billion.

By banning the popular Bitcoin and cryptocurrencies Wechat groups China hopes to kill off speculation that is always rife in the crypto world.

In the comment section below let us know what you think of this story. Do you believe whatever the Chinese government is doing will make any difference?

coinmag

Basil is a Bitcoin and blockchain evangelist with several years of writing in tech and finance related industries. Having several years of experience with leading cryptocurrency and tech related sites in past, he believes strongly in the revolutionary power of the blockchain technology.

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