Prepping for a Cryptocurrency World: China Edition

The market's lackluster performance in 2018 pales in comparison to its stellar thousand-percent gains in 2017. What has happened? Since 2013, the Chinese government has taken measures to regulate cryptocurrency, but nothing compared to what was enforced in 2017. (See this article for a detailed analysis of the Chinese government's official statement) 2017 was a great year for the cryptocurrency market to take notice and grow. Extreme price volatility has forced central banks to take more extreme measures, including banning initial coin offerings (IOS) and cracking down on domestic cryptocurrency exchanges. Shortly thereafter, mining factories in China were forced to close due to excessive power consumption. Many exchanges and factories were moved overseas to avoid regulation, but remained open to Chinese investors. In a recent series of government-led efforts to monitor and ban cryptocurrency trading among Chinese investors, China has deployed its "Eagle Eye" to monitor foreign cryptocurrency exchanges. Expanded. Businesses and bank accounts suspected of conducting transactions or related activities with foreign virtual currency exchanges are subject to measures ranging from restrictions on withdrawal limits to freezing of accounts. Rumors persist in the Chinese community that more extreme measures will be implemented on foreign platforms that allow trading between Chinese investors. " If there are further regulatory actions, we must await orders from higher authorities. " WHY!? Imagine investing your savings in a digital product (in this case, cryptocurrencies) that cannot be verified. If the crypto bubble bursts, he or she could get luck or lose it. Translate this to millions of Chinese citizens, and you're talking billions of Chinese yuan. The market is flooded with scams and pointless IOS. (I'm sure you've heard of someone sending coins to random addresses with the promise of doubling his investment, or doing meaningless IOS). Many inexperienced investors invest money and don't really care about the technology and innovation behind it. The value of many cryptocurrencies is derived from market speculation. Joining his ICO, which includes either a well-known advisor, a promising team, or decent publicity during the crypto boom of 2017, guarantees at least a 3x increase in your investment. The lack of understanding of the company and the technology behind it, combined with the proliferation of Icon, is a recipe for disaster. Central bank members report that nearly 90% of Icons are fraudulent or involve illegal fundraising. In my opinion, the Chinese government wants cryptocurrencies to remain "manageable" and not grow to the point of failure within the Chinese community. China is taking aggressive, controversial but correct steps towards a safer and more regulated cryptocurrency world. In fact, it may be the best move the country has taken in decades. Will China issue an ultimatum and outlaw cryptocurrencies? I highly doubt it, as it would be rather pointless to do so. While financial institutions are currently prohibited from holding crypto assets, individuals can hold them but are not permitted to engage in any form of trading. State-run virtual currency exchange? He got this name because his two major political parties participate in the annual "Two Sessions" (the National People's Congress (NPC) and the National Committee of the Chinese People's Political Consultative Conference (CPC)). Rice field. In March, heads of state and governments meet to discuss current issues and make necessary legal changes. NPCC member Wang Engine explored the prospects of a state-owned digital asset trading platform and launched a blockchain and cryptocurrency education project in China. However, the proposed platform would require a verified account to allow trading. " With the introduction of relevant regulations and cooperation between the People's Bank of China (BOC) and the China Securities Regulatory Commission (CSRC), a regulated and efficient cryptocurrency exchange platform will become a formal platform for companies to raise funds. (excerpt from Wang Engine's presentation at Two Sessions) But one thing is for sure, everyone is embracing blockchain Despite the crackdown on cryptocurrencies, the Chinese government supports blockchain initiatives and adopted the technology. In fact, the People's Bank of China (BOC) is working on digital currencies and conducting fake transactions with some of China's commercial banks. It is yet to be confirmed whether the digital currency will be decentralized and offer cryptocurrency features such as anonymity and immutability. Anonymity is something China does not want in its own country, so that is just the digital yuan. However, any digital currency created as an alternative to the Chinese yuan is subject to existing monetary policies and laws. People's Bank of China Governor, Zhou Xiaochuan. Source: CNBC" Many cryptocurrencies are experiencing explosive growth, which could have a huge negative impact on consumers and individual investors. We give people the illusion of getting rich overnight. " I don't like products that take advantage of the huge opportunities of speculation (cryptocurrency). " Excerpt from an interview with Zhou Sichuan enduring a media appearance on the People's Bank of China, Zhou Xiaoguang, president, criticized cryptocurrency projects that are taking advantage of the cryptocurrency boom to make money and fuel market speculation, noting that the development of digital currencies is "technically inevitable". Hangzhou, known as Alibaba's headquarters, has listed blockchain technology as one of the city's top priorities for 2018. Chengdu's local government is also proposed to build an incubation center to promote the adoption of blockchain technology in the city's financial services. Local companies such as Tencent and Alibaba are also partnering with blockchain companies or starting their own projects. Blockchain companies like Chains have formed several partnerships with Chinese companies to improve the transparency of their Chinese supply chain. All indications are that China is working towards becoming a blockchain nation. China has always been open to new technologies such as mobile payments and artificial intelligence. Going forward, China will undoubtedly become the first blockchain-enabled country. Will the Chinese government back down and allow its citizens to trade again? Perhaps when the market matures and becomes less volatile, but definitely in 2018. I am currently a student studying in Shanghai. As a tech enthusiast, I am fascinated by the Chinese tech scene.