Thursday, May 19, 2022

Chinese Crypto Investors Can Trade On Their Own Risk: Says Government Representatives

After a potential crackdown on crypto and activities related to it, a report was published by the representatives of the Chinese Government, in which they criticized the crypto markets. 

Much of the criticism came from the state-owned Xinhua News Agency and China Central Television. While publishing their report, they informed the audience about rampant market manipulation. 

The agencies published the report with an aim to prevent Chinese citizens from crypto trading. 

On May 03, Xinhua News Agency in its report explained the reasons for going after the crypto market. 

On one hand, the government representatives suggest people stay away from crypto because of its risky and volatile nature, while on the other hand, crypto trading is certainly not an illegal activity for the state.

“If virtual currencies like bitcoin are treated as virtual commodities that can be bought and sold, then the general public has the freedom to participate in the trade at their own risks,” reports Xinhua.

But it also mentioned that it will continue exposing the projects that use virtual currencies as a speculative investment to attract retail investors to make them rich overnight.

China Central Television is also trying to educate people about cryptocurrency scams. On May 02, it broadcasted a news clip which shows how easily the blockchain tokens could be created and how various scams have been using those methods to defraud people. 

The recent report published by the state-run media outlet of China shows that country has a complicated attitude towards the crypto industry.

Buying, selling or owning cryptocurrency is not a criminal offense in China, still, the state is trying to keep people away from the crypto markets. That is the reason it restricted certain intermediary services.

In 2017, the People’s Bank of China released an order for the financial institutions and non-banking payment providers in the country, asking them to stop offering their services to the clients involved in crypto-related activities. 

After the ban was imposed the financial institutions broke their channels with cryptocurrency exchanges in China.

Since then, the crypto investors have been relying on over-the-counter desks for fiat on and off- ramps and from 2020, that has become more complicated and risky.

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