Considering that China has not had a very cordial relationship with cryptocurrency in the past. Recently, there is a lot of pressure on the activities of virtual currency. It has been one year since China has banned Initial Coin Offerings and in spite of its liberal stance on the cryptocurrency, it has expressed an aversion to the idea of speculation regarding virtual currency. However, China continues to support the Blockchain technology as it can be believed that there is some security that is involved when it comes to Blockchain technology. A very important element of Blockchain technology is that it has brought about dynamism in the field through Bitcoin and the use of the internet. It has transformed the perspective of several economic experts in the sector. However, it will be a while before digital currency provides the evidence of its transformational virtues at a larger level.
At one point in time, Bitcoin used to be traded to a large extent by China, however, when the price of Bitcoin peaked, a lot of regulations were put and the sale of new currencies was completely banned in China. China also went on to ban the trading relations between Yuan and Bitcoin at the domestic level. Following this, the projects regarding Blockchain, that were supposed to take place in China were taken overseas. However, some of these activities are still going on and the speculation has gone unseen by the various regulators overseeing the speculation activities. Very recently, the authorities in China, that is, the People’s Bank of China has recently issued warnings against the illegal fundraising even if it involves using the international servers to gain access to the investors who belong to China. A lot of changes in the activity related to cryptocurrency have taken place since that warning was issued. For example, on the same itself, it was announced by Tencent that it will prohibit transactions based on cryptocurrency through the means of WeChat. Some of the accounts of WeChat were also deactivated because these accounts published information related to cryptocurrency and flouted the norms that were laid out by the government of China.
However, the government is determined to go hard on the sector of cryptocurrency and it has banned all the activities related to virtual currency from a busy area called “Chaoyang district”.
Recently, it can be believed that a lot of investments are taking place by several important organizations in the sector. In spite of the increased regulations, it is believed that the investment from the private organizations has persisted largely so far. In spite of the action of the government against cryptocurrency, it can be believed that not much has been affected when it comes to virtual currency activities.