In the last year, the cryptocurrency market took a series of heavy punches from the Chinese government. The market took the hits like a warrior, but the combos have taken the toll in many cryptocurrency investors. Industry lackluster performance in 2018 pales in comparison to its great thousand-percent gains in 2017. coin kurs
What has happened?
As 2013, the Chinese federal government have taken measures to regulate cryptocurrency, but little or nothing compared to what was enforced in 2017. (Check out their article for a detailed analysis of the official notice given by the Chinese government)
2017 was a flag year for the cryptocurrency market with all the attention and growth it has achieved. The extreme price volatility forced the Central bank to undertake more extreme measures, including the ban of preliminary coin offerings (ICOs) and clampdowns on domestic cryptocurrency exchanges. Soon after, gold mining factories in China were forced to close down, citing excessive electricity ingestion. Many exchanges and industrial facilities have relocated overseas to avoid regulations but continued to be accessible to Chinese shareholders. Nonetheless, they still are unsuccessful to escape the paws of the Chinese Monster.
In the latest series of government-led efforts to monitor and ban cryptocurrency trading among Chinese traders, China extended its “Eagle Eye” to monitor overseas cryptocurrency exchanges. Companies and bank accounts suspected of executing transactions with overseas crypto-exchanges and related activities are subjected to steps from limiting withdrawal boundaries to freezing of data files. There have even recently been ongoing rumors among the Chinese community of more extreme measures to be enforced on foreign websites that allow trading among Chinese investors.
“As for whether there will be further regulatory measures, we will need to wait for instructions from the larger authorities. inch Excerpts from an interview with team leader of the China’s Accumulated Network Security Supervision agency under the Ministry of General public Security, 28th March
Imagine your child investment his or her cost savings to invest in searching for product (in this circumstance, cryptocurrency) that he or she has no way of verifying its genuineness and value. He or she could get blessed and strike it wealthy, or lose it all when the crypto-bubble burst open. Now scale that to an incredible number of Chinese citizens and we are talking about billions of Chinese Yuan.
The market is packed with scams and pointless ICOs. (I’m sure you have heard news of men and women mailing coins to random address with the promise of doubling their investments and ICOs that simply avoid make sense). Many unsavvy investors are in it for the money and would care less about the technology and advancement behind it. The cost of many cryptocurrencies is derived from market speculation. During the crypto-boom in 2017, get involved in any ICO with either a famous specialist onboard, a promising team or a decent media hype and you are assured at least 3X your investments.
A lack of understanding of the organization and the technology at the rear of it, combined with the proliferation of ICOs, is a recipe for devastation. Members of the Central bank reports that almost 90% of the ICOs are fraudulent or entails against the law fundraising. In my opinion, the Chinese govt wants to ensure that cryptocurrency remains ‘controllable’ and never too big to are unsuccessful within the Chinese community. China is taking right steps towards a less dangerous, more regulated cryptocurrency world, albeit aggressive and questionable. In fact, it might be the best move the country has considered in decades.