June 4, 2021 / news

China: Chinese Сitizens Сan Trade Bitcoin To Their Care

china mining

The regulators presented their opinion on trading operations with cryptocurrencies by the citizens of the country.

Chinese authorities have clarified their position on crypto trading. Regulators are warning citizens that digital asset trading can be dangerous. At the same time, the regulatory authorities made it clear that crypto trading is not prohibited in the country. Information about this appeared in the local media.

The clarifications followed an increase in regulatory pressure on the digital asset market from the Chinese authorities at the end of May 2021. In particular, the Chinese authorities called for control of Bitcoin mining and trading operations with BTC.

Many citizens of the country have left the crypto community against the background of increasing regulatory pressure on the crypto industry in the PRC. This is indicated by the massive sales of the most popular stablecoin on the market, Tether, for the yuan.

The bans by PRC regulators was supported by many regional authorities. For example, in Inner Mongolia they are thinking about a ban on mining. Chinese government’s pressure on the crypto industry has affected the digital asset mining market. For example, against the background of the introduction of bans, the hashrate of the most capitalized cryptocurrency – Bitcoin – went down.

The changes indicate the disconnection of a large number of miners from the digital asset network. The fall was due to the introduction of regulatory bans in PRC. Accordingly, it can be assumed that the decrease in the bitcoin hash rate is related to the repression faced by members of the crypto community in China.

Against the background of pressure from the PRC authorities on investors, the impression was created that the country was preparing for a complete ban of cryptocurrencies, in anticipation of the launch of the digital yuan. It turned out that some of the fears of the crypto community members were unfounded.

PRC Position On Crypto Trading

Despite the tightening of the policy of the Chinese authorities regarding the digital asset market and the propaganda of refusal to conduct operations with cryptocurrencies, crypto trading in the country is still within the law. This explanation of the position of the PRC regulators appeared in the local media.

A number of publications and on Chinese television, which many consider to be the mouthpiece of the country’s authorities, noted that Chinese citizens can trade cryptocurrencies at their own peril and risk.

Despite this, the media and television programs continue to educate the Chinese about the risks of investing in digital assets.

The Block called the attitude of the PRC regulators towards cryptocurrencies “difficult”. Despite the ambiguous behavior of the Chinese authorities in matters related to the control of the digital asset market, the Chinese continue to buy a new financial instrument for the yuan.

We will remind, recently billionaire Ray Dalio told how the digital yuan can become the main reserve currency in the world.

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