China has come out strongly to ban the trading of bitcoin and cryptocurrency in the country including blocked all websites and apps that enable cryptocurrency trading and initial coin offerings (ICOs).
According to news from The South China Morning Post, China also blocked foreign platforms that enable bitcoin trading in its effort to kill the cryptocurrency market in China altogether.
“To prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs,” said an article published on Sunday night (Feb. 4) by Financial News, a publication affiliated with the People’s Bank of China, reported the South China Morning Post.
“ICOs and virtual currency trading did not completely withdraw from China following the official ban … after the closure of the domestic virtual currency exchanges, many people turned to overseas platforms to continue participating in virtual currency transactions. Overseas transactions and regulatory evasion have resumed … risks are still there, fueled by illegal issuance, and even fraud and pyramid selling.”
Chinese regulators want to block people in the country from accessing offshore and homegrown platforms that enable trading. The government is also going after companies and individuals who enable cryptocurrency trading by providing services such as market making, settlement and clearing.
Bitcoin has been facing difficultly with the price has been very volatile, recently slumping after hitting a high of $20,000 last year. This has made Citigroup, JPMorgan and the latest Lloyds Banking Group ban its clients from buying the marquee crypto (that would be bitcoin, of course) using credit cards, as the currencies continue to show extreme volatility in trading.