China’s strict stance on cryptocurrencies continued to play out after the recent crackdown guidelines by the Central Bank. Recent reports suggest that China is now planning to add crypto mining to the “Negative List” of industries that would prohibit investors from making investments in the industry. The negative list industries are prohibited or restricted from any investment from both mainland China investors as well as foreign investors.
The negative list released by the statement department saw a decline in the number of companies listed, falling from 123 in 2020 to 117 in 2021. The latest step is only one among many as part of the recent crackdown that is being deemed as the strictest by the Beijing authorities. The People’s Bank of China issued guidelines that deemed all crypto transactions illegal and also instructed authorities to take action against existing medium and small crypto mining operations going on in the country. It also warned foreign crypto exchanges from offering any firm services to mainland China customers.
As a direct result of the recent crypto crackdown, more than 20 crypto firms and exchanges have shut their operations in the country. Several foreign crypto exchanges including Huobi, OKEx, and Binance also announced the closure of all services by December.
Crypto Market Unfazed By China Crackdown
Chinese crypto ban is nothing new and has become a part of the Bitcoin bull cycle as the country has banned crypto assets nearly a dozen times. With each ban order, its impact on the crypto market became less prominent as evident from the current bullish cycle despite the recent crackdown.
Crypto market valuation has grown above $2 trillion with Bitcoin trading near the $55K mark with over a trillion in market cap. Major altcoins have either broken past their previous all-time highs or just a few rallies away from it.
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