China which has previously seemed interested to check cryptocurrency trading in the country, has shown via its recent moves that it may completely eliminate cryptocurrency trading.
According to Sunday’s article from a news publication affiliated with the People’s Bank of China (PBOC) would block the access to all the foreign and domestic cryptocurrency exchanges and initial coin offerings (ICOs) websites.
China has already banned the world’s largest cryptocurrency — bitcoin exchange — in late 2017 in order to stem online trading. However, the country’s attempt failed to eliminate virtual currency trading completely.
According to SCMP, the article said, “ICOs and virtual currency trading did not completely withdraw from China following the official ban.”
However, many traders turned to foreign exchanges in order to make the virtual currency transaction. The article said, “Overseas transactions and regulatory evasion have resumed … risks are still there, fueled by illegal issuance, and even fraud and pyramid selling.”
Facebook has also announced on Friday that the social media platform would ban all ads for bitcoin, cryptocurrencies, and ICOs that also helped to further the selloff and driving down the prices of all the major cryptocurrencies.
ICOs which are the cryptocurrency-based fundraising method has become popular with startups in order to raise money. However, experts have warned that many ICOs are fraudulent.
A Chinese news agency Xinhua reported that PBOC would tighten the regulations on the domestic cryptocurrencies investors involving in foreign transactions of ICOs and digital currency as the total market cap for the digital currencies continues to tumble. The fear of latest regulations in Asian markets like China is one of the contributing factors that the market remains unstable.
The PBOC has banned the financial institutions earlier this month from proving any funding to activities related to virtual currencies. The bans on cryptocurrencies have already affected prominent crypto exchanges in the country.