Bitcoin China

China’s Central Bank Releases New Crypto Warning

The crypto market is extremely volatile these days, with BTC falling really hard and then surging back up in just a little amount of time.

At the moment of writing this article, the crypto market has mixed prices with some of the important coins trading in the red, and the others, in the green.

During the past 30 days, BTC fell by $3,000, and this was following the catapult to over $10k at the end of October.

If you recall, China’s president revealed back then that the country fully supports the blockchain tech.

At the moment of writing this article, BTC is trading in the green, and the most important coin in the crypto market is priced at $7,213.69.

China’s Central Bank issues an important statement

The past Friday, China’s Central Bank, the People’s Bank of China, issued a statement regarding the government’s latest crypto clampdown and warnings for consumers and business operators, according to the latest reports coming from the online publication the Daily Hodl.

Primitive Ventures partner Dovey Wan highlighted a few points of the announcement.

First of all, he said that “ICO, IFO, IEO, STO are all unauthorized, illegal public offering and securities issuance, and potentially illegal fund-raising, financial fraud, pyramid schemes, and other illegal crimes.”

He continued and detailed the second point and stated that the “Shanghai law enforcement agency would conduct ‘Special rectification of cryptocurrency-related trading platform, which can be registered overseas, shall be immediately rectified and retired’.”

The third point states that they will further regulate trading platforms whose servers are outside the mainland but which are providing virtual currency trading services to domestic residents.

The fourth point is that investors should be careful not to mix blockchain tech with crypto, and “here are multiple risks in cryptocurrency financing, issuance, and trading (again, Blockchain not crypto).”

The worst week in crypto history

The online publication mentioned above also offers two opinions coming from crypto analysts Jeff Dorman and Brian Kelly.

Dorman said that the past week was one of the worst weeks in the history of crypto, and Kelly stated this:

“The People’s Bank of China came out with a note reminding people that, you know what, cryptocurrency trading in China is still illegal. And so that got the speculators selling.”


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