The Chinese government seems to its hard line against crypto and Blockchain-to strengthen technology. Reports from China suggest that all commercial crypto and Blockchain events in the Region were said officially. This is all the more surprising, since China had encouraged the local financial authorities on several occasions, to speed up the development of the Blockchain technology and $ 3 billion available to Finance Blockchain Startups.
The information on the prohibition
According to published documents of the district government in Beijing, the local tax authorities and the police were instructed, offices and Hotels in the event of crypto-Events. The official decree was known to the Public after it was tweeted from crypto influencers such as Dovey Wan – the Director of Dhanua Capital, a California-based venture capital Fund, and Red Li, a Chinese crypto-currency researcher and co-founder of 8BTC–.
The new China crypto BAN is now official … @coindesk @Cointelegraph @MessariCrypto pic.twitter.com/qnfJyK61a4
— Dovey Wan (@DoveyWan) August 22, 2018
Since the blanket ban of all crypto trade and exchange transactions in China is still in force, relates to the current ban on all communication channels, the spread of the cryptographic message. As a result, some of the crypto-focus closed-focused news agencies, which have led to their official accounts on WeChat,.
The strict prohibition led to the police crypto dissolved-related events. It was on the grounds that the measure to maintain the control of the industry is essential. The Chinese government is currently working to develop new regulatory frameworks for the Monitoring of the crypto-trade.
Loss of communication on WeChat
Tuesday evening (21.08.2018) users WeChat, eight on crypto-currency-aligned news agencies have closed their official accounts. The agencies indicated that the reason for the closure in the newly published guidelines of China’s censorship of the Internet, the Cyberspace Administration. Of popular news agencies such as, for example, Lanjiner, Jinse, Huobi and deep chain are affected.
Tencent, the mother company of WeChat, has officially confirmed that the shutdown of the news agencies is permanent, because the agencies “are suspected to have information about ICOs [initial coin offerings], and to the speculation with crypto-currencies released”.
Previously, the government had made it clear that she is against the trade in digital assets on crypto-Exchanges, although you want to make sure that the country supports the development of the Blockchain technology. Analysts expect that the ban was imposed, with the ultimate goal to prevent funds from local investors to be brought out of the country. Through the use of crypto money can be transferred to the currencies relatively easy in overseas markets. This could undermine the strict capital controls by the Chinese government. In addition, the Chinese government formed a working group that reviewed the savings accounts and assets of millionaires. The focus is also on tax evasion in overseas markets.
The new regulations also require providers of the Chat Apps available, that you can keep to “public instructions” and “national interests”. In it is written: “providers of Instant Messaging Tools, which are accessible to the public, must adhere to the relevant laws and regulations. For users of [these services], in violation of this agreement, shall be made by the provider of the service measures, such as warning, limitation of access and suspension or closure of the account. In addition, all relevant information must be stored for later legal action. The Provider is obliged to inform the competent authorities in the case of a misconduct.“
China’s two faces
These measures, even local analysts and experts will meet surprisingly. Nobody expected that would limit the government’s crypto and the Blockchain, and related Events. Especially because the government has sent optimistic signals in terms of the development of the Blockchain and distributed systems. The Chinese government had allocated almost $ 3 billion for new Blockchain projects and Start-ups to stay on top of the Blockchain-development.
The Chinese state Council had planned on 24.05.2018 the introduction and marketing of Chain systems in a large scale and the financial authorities and technology centres are encouraged to accelerate the development of the Bloch chain.
The Council wrote at the time:
[…] a regional crypto market in Guagdong, to build and to open ourselves to the capital market in Hong Kong, Macao and other international investment institutions. We will develop the financial technologies consistently and the study and application of the Blockchain, and Big Data technologies under the premise of legal compliance, accelerate.
To forbid the recent decision of the Chinese government is, Blockchain and crypto – events stands in stark contrast to the optimistic and future-oriented approach, with the development of the Blockchain technology in the past has been driven. These events are for Blockchain Startups is essential, since they provide the opportunity to establish contacts with investors and strategic partnerships. This measure will restrict the growth of the industry significantly and could makes for the super-costly and harmful.
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This article was from English into German:
Senior IT Consultant and Crypto Enthusiast always in search of interesting news.