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China Expands Crypto Crackdown, Targeting Mining and Overseas Platforms

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24.09.2021

Cryptocurrencies

Liz Wolfe | 9.24.2021 3:30 PM

In regulatory action announced on September 15 but just today posted to the People's Bank of China's website, the Chinese government will be further cracking down on cryptocurrency transactions made via foreign exchanges, as well as mining. Though these actions were teased by Vice Premier Liu He in May, and domestic trading was banned back in 2017, the new notice clarifies the government's priorities while keeping the punishment for violating the law totally opaque.

From one English translation of the notice, the government vowed to "strengthen the management of Internet information content and access related to virtual currency," while "severely crack[ing] down on illegal financial activities related to virtual currencies."

"Recently, virtual currency trading hype activities have risen, disrupting economic and financial order, breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes, and money laundering, and seriously endangering the safety of people's property," says the People's Bank of China, clarifying that "virtual currency does not have the same legal status as legal currency."

Formerly, international cryptocurrency trading platforms were aware that allowing users based in China involved wading into a tricky legal gray area given the domestic ban. This new notice clarifies the Chinese government's........

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