The Chinese financial authorities are finally ramping up the crackdown on illegal fundraising activities. The news comes from a conference that was held in Beijing this Monday. On it, major Chinese authorities said that they will keep a close watch on the interest rates charged by companies and financial firms in the private sector – increasing their scrutiny on the illegal fundraising methods.
The People’s Bank of China is one of the many authorities that is pushing the initiative towards blocking ICOs and cryptocurrencies. According to Reuters, the bank had ‘safely closed down’ all of the initial coin offerings, platforms and cryptocurrency exchanges present in the country.
China first issued the blanket ban on all domestic ICO platforms in September 2017, following the ruling with restrictions in order to shutter the domestic crypto trading industry. The crypto clamps began as early as January 2017, when Bitcoin celebrated the first high of $1,000 at the time.
According to research from China’s internet finance association, Chinese citizens are continuing to participate in the crypto trading through foreign exchanges and ICOs. Despite the final crackdown as it is seen by the authorities, the domestic crypto traders are moving overseas and having their assets released from the domestic financial system.
Meanwhile, there are also many financial scams such as illegal fundraising in China. This industry has racked up $36.5 billion in 2016 which was spread over 5,000 new criminal cases, according to the state-run news agency. More than 30% of them were found to be related to private investment platforms.
South Africa Doesn’t Intend On Banning Crypto Trading
Crypto Exchanges In Bulgaria Are Investigated: Government Asks For 10% On Profits
Accounts Of The First Digital Bank In India Closed After Involving In Crypto-Related Activity
“I've been a user of DBS' Digibank for a year. Although I regularly used Kotak Mahindra Bank for my cryptocurrency transactions, I used Digibank only 7 times throughout the year. On January 14th, I received multiple messages from my twitter [sic] followers regarding an account closure notice by Digibank. I checked my mailbox and found the mail myself.”However, Digibank stated:
“Reserve Bank of India through their public notices have warned/advised the public regarding risks associated with virtual currencies. We reiterated the same vide our emails dated 4th May 2018 and 2nd Aug 2019, cautioning our account holders [against] the risks associated [...] and that DBS accounts and debit cards should not be used for their purchase or any kind of dealings.”Many other users responded to the allegations that not only Digibank but many other banks are doing the same as well.
BitMex Pulls The Plug On Trading Accounts In Quebec And The US
‘’The development comes at the same time as the Hong Kong-based company notifying users in North Korea, Iran, Syria, Cuba, Sudan and Sevastopol in the Crimea since the fourth quarter of 2018 against holding positions or trading on BitMEX, as these are restricted jurisdictions.’’It seems like BitMex only wants to cover its back and provide protection for their users against regulatory crackdowns. However, the exchange decided to pull the plug on the trading accounts after the Canadian regulatory body has announced the BitMex is operating illegally in Canada:
‘’BitMEX is not registered with the AMF and is therefore not authorized to have activities in the province of Quebec. We informed this company that its activities were illegal.’’There is still no explanation why the exchange decided to shut down the trading accounts in the US. Many believe that the exchange does so because of the same strict crypto regulations. We are still expecting a comment from BitMex since it seems like there is almost a billion dollars worth of crypto still on the platform.
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