Despite the government’s efforts to eliminate Cryptocurrency in China, the Chinese Crypto-enthusiasts have made sure that the regulator does not get this easy going. They have continued with their Crypto and Blockchain innovations just like in every other country.

Stringent Regulations

The operational environment has proven tough having seen the government implement bans on Initial coins offerings, foreign exchanges and domestic fiat Cryptocurrencies, and the ban on exchange-like services. Many of the top Crypto business and exchanges have however resorted to shifting their operational grounds within Asia however in areas with more tolerant policies on the digital currencies such as Japan, Hong Kong, South Korea and even Singapore.

Some innovators have however done a comprehensive market study and have foreseen a possibility of a greater Crypto and Blockchains market despite the existing limitations. The innovators have gone ahead to keep track with their innovations however with a Chinese audience in mind.

Reasons for ban

China became the first pro-active country in questioning Cryptocurrencies and restricting its citizens from accessing it. The government moved in to implement this ban because it had the feeling that the ICO market could severely impact the Chinese citizens and also undermine the government’s societal structures that have been built behind the communist and centralist systems.

The government has continued to warn the China-based Cryptocurrencies of a shut down on the companies that failed to comply with its orders on eradication of Cryptocurrency related trading’s from their platforms. Besides the shutdown, it further threatened to blacklist Chinese International websites that propagated the Cryptocurrency trade on its portal.

China is said to be keen on its immense international economic influence having greatly contributed to the growth of International business industries, manufacturing and service provision. The country has been said to have taken a firm stance on Cryptocurency development since they believe this would heavily impact their current progress and sharply affect their influence in the world platforms.

Further, China feels that the digital currency industry is mushrooming at a very high rate, which at some point would become unsustainable.