As China continues its crackdown on local cryptocurrency exchanges, many Chinese cryptocurrency users have simply moved to international platforms. According to latest reports, China is now looking to crack down on international cryptocurrency platforms as well.
According to a report in Bloomberg, China is trying to reduce the number of users investing in cryptocurrencies. This is the reason why the users who are circumventing the crackdown on local cryptocurrency exchanges are now in the crosshairs of authorities.
In the last few weeks, there have been reports that China will clamp down on international cryptocurrency platforms by blocking their websites. Already, an ICO ban is in place in China.
At the beginning of 2017, China was the biggest market for cryptocurrencies. This is the reason why any volume change from China can have a drastic impact on the cryptocurrency market.
Owing to the crackdown of the government on the cryptocurrency industry, many businesses have moved to other countries. Most of the cryptocurrency mining businesses have either moved to Canada or Switzerland.
The dominance of Chinese citizens in the cryptocurrency market has fallen from a high of 90% to just 1%. Currently, the only way for Chinese citizens to invest in cryptocurrencies is to use an international platform. If the government cracks down on these platforms as well, it will be very difficult for the Chinese citizens to invest in cryptocurrencies.
If the international platforms are blocked as well, most of the users will not be able to access the trading platforms to invest in cryptocurrency. This will mean that Chinese investors will have to route the money through other means if they want to invest in cryptocurrencies. This could potentially be extremely risky.
It remains to be seen whether the government of China uses the website ban mechanism to prevent users from accessing international platforms or whether it makes use of any other mechanism. For now, however, it seems like the government of China is looking to crack down on every way in which its citizens can invest in cryptocurrencies. However, as the dominance of Chinese citizens on the crypto market has decreased, the significance has also reduced.
Most of the Chinese cryptocurrency investors have seen this move coming for a long period of time.