The Xinhua News Agency, one of the most credible news outlets in China, connected to the state with its president one of the most pivotal members of the Chinese Communist Party’s Central Committee, has reported the hard stance taken by the state on cryptocurrencies. Essentially calling for a iron fisted crackdown on those using such technology for fraudulent purposes and scams, the rest of the announcement however suggested that the state should make regulations to allow effective licensing of legitimate cryptocoin ventures in the country.
China has had a hard stance on cryptocoin which has already seen many huge exchanges such as BTCC and Huobi having to close their doors while the majority of other exchanges in the country will have to close operations by the end of the month. The announcement also acknowledged plenty of scope remains for authorities to regulate cryptocoin businesses hinting at increasing intervention which may come from the state in the near future.
[T]here are still many regulatory vacuums in the field of virtual currency, which require governments and central banks to give enough attention to the regulation as soon as possible.
To conclude, the recent news coming from the Chinese government does suggest that some exchanges may be given licenses to allow operations to carry on legally ion the country. AS many have predicted, preventing citizens from trading the cryptocoins by shutting down exchanges has merely deterred users and forced them to move their business elsewhere. With countries such as japan actively legalizing and licensing certain exchanges, exchanges in the country have seen a welcome rise in trading volume from the far east. The advent of VPN and other technology has allowed many to bypass and government restrictions.