China's central bank has strengthened the ban of cryptocurrency trading announcing that all transactions of cryptocurrency are illegally. In May, Chinese financial institutions were banned in trading in Bitcoin, Ethereum and other platforms, leading local authorities in several parts of China to shut down crypto mining operations. As recently as 2017, Chinese mining groups generated more than two-thirds of all Bitcoin issued daily. This is the latest in China's national crackdown where the ban is extended to overseas firms.
Chinese government agencies have repeatedly raised concerns that cryptocurrency speculation could disrupt the country's economic and financial order, which is one of Beijing's top priorities. The Chinese government is also requiring internet companies that would provide individuals with the link to overseas exchanges to also be prohibited. In an interview with BBC World, our Alma Angotti explains that the "government is trying to prevent Chinese nationals from trading online on overseas exchanges."
Alma shares that she expects that the Chinese regulators will have significant enforcement. "All of the major financial regulators have banded together to prohibit this," This includes the Central Bank security regulator and foreign exchange regulator. In addition, China is developing a digital Yuan currency. She continues to explain that Chinese regulators "probably see trading in other cryptocurrencies as a threat."
Will other countries follow China? Alma predicts that other countries are developing their own digitized currency to compete with existing cryptocurrencies.