The People’s Bank of China (PBoC) has released a new set of detailed crypto restriction guidelines today. The new guidelines seem pretty comprehensive and ban almost anything related to cryptocurrencies. The Chinese central bank has deemed crypto illegal and treated it as a highly speculative market. The guidelines were published in three main points, including:
- Crypto mining prevention
- Prevention of crypto trading
- Blocking foreign crypto exchanges from serving Chinese customers
What makes these guidelines important is that most of the April-May pressure came directly from the central bank, although most of the pressure came from different cities in China. The documentation is also highly detailed and inclusive without any gaps. For example, previously only crypto trading in fiat currency was illegal, but now any type of crypto trading is considered illegal.
“All crypto-related transactions are illegal. Controls will be increased to prevent risks arising from crypto currency transactions. Overseas exchanges should be prevented from serving citizens in China. Monitoring of crypto-related content on the Internet will also be enhanced.”
Crypto pressure in China led to billions of dollars of market sell-off in May, and the PBOC’s latest strict crypto-pressure policy could lead to similar market setbacks. The crypto market has been flooded with news that China is under pressure, and although the market turned green earlier today, it is currently in a bloodbath.
As the entire crypto market started to turn red, another leading Chinese crypto information platform claimed it was a FUD. Molly, by the name of Twitter, claimed that the reported PBOC cryptoprint documents were from mid-September, were published on September 15 and have now been redistributed.
PBOC’s announcement about ban crypto got widespread today is was actually announced on September 15th, but posted online today. The market already reacted on those regulatory fud. pic.twitter.com/ecjiiK81Dt
— Molly (@bigmagicdao) September 24, 2021
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