China’s financial technology entrepreneurs continue to try new things with virtual currencies, meaning border-less virtual assets not supported by any nation’s monetary authority. Take an example, a specific businessman in Shanghai set up an open software system in a bid to make a cryptocurrency exchange for trades, but the government continues to take action against cryptocurrency operations. The latest regarding this directive: as at mid-April Shanghai police stopped an event hosted by Blockchain entrepreneurs, people trying to do more with the electronic currency’s virtual transaction ledger.
These up and downs may continue for a while. The country (China) with a managed 12 trillion USD-plus economy throttled potentially destabilising cap outflows just one year ago, is keen to hold the control of cryptocurrency it has today. China sees advantages in letting digital coins develop in a manageable fashion.
Tougher Crypto Regulations
Chinese authorities banned ICOs as fundraising tools and some cryptocurrency exchange firms. In January, the powers wielded the axe to over-the-counter and peer-to-peer trading networks. It also prohibited foreign cryptocurrency exchanges. This directive necessarily led to the Country’s monetary authority (People’s Bank of China) to add safeguards against speculative investments and give investors more security.
Hints of A Welcome For Virtual Currency
China’s monetary authority plans to broaden the research and development of electronic currency in the country. The authority’s finance institute lists cryptocurrency as a top priority for this year. The government intends to improve Blockchain behind cryptocurrency. It may be contemplating using cryptocurrency in its monetary policy.
Despite multiple reports of shutdowns in the crypto ecosystem by the Chinese government, many crypto-linked businesses have been carrying on. China backed Xiong’An Global Blockchain Innovation Fund earlier this month, started giving $1.6 billion to Blockchain startups across the country.
China Wants A Stake in Cryptocurrency Exchange
China wants control in crypto policies. The country is likely going to have a chain built and run by the authorities.