China Shuts Down 173 Cryptocurrency Exchanges and Token-Issuing Platforms

CnLedger quoted the People’s Bank of China (PBoC) Financial Stability Report (2019), stating that “the 173 Chinese virtual-currency trading and token issuing platforms have all exited without risk.”

Just in: "The 173 Chinese virtual-currency trading and token issuing platforms have all exited without risk", from PBoC's newly released China Financial Stability Report (2019).

Source: https://t.co/AScw6QNefKhttps://t.co/nVaC1bGCrd

— cnLedger (@cnLedger) November 25, 2019

This move means that the Chinese government has finally closed down every competitor in the cryptocurrency space, leaving the door open for its soon-to-be-released stablecoin. The PBoC had informed the general public about the legality of cryptocurrencies and what it plans to do to curb illegal bitcoin trading, last week. It vowed to crack down on cryptocurrency exchanges. In the ensuing announcement, the agency said it would use measures such as inspections and a ban on crypto trading activity to “resolve related risks in a timely manner.”

Cryptocurrency speculation has risen in China in recent weeks since President Xi’s heartwarming speech on blockchain technology. The increase in optimism for blockchain technology has followed with a restrictive arm towards cryptocurrency trading. The PBoC even reiterated its commitment to stamping out cryptocurrencies by informing investors not to confuse the technology with the use case.

China has gone full throttle in its case of informing the world that it likes blockchain, not Bitcoin. This is coming less than two weeks after hailing Bitcoin as the first successful application of the blockchain technology.

China’s ‘Silicon Valley,’ Shenzhen, has instigated a crackdown — identifying 39 cryptocurrency companies that it claims have been responsible for defrauding consumers. Just last week, Beijing based cryptocurrency exchange BISS was shut down by the authorities and arrests were made.

Images courtesy of Twitter, Shutterstock.

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