Since China launched a crypto ban during 2017, research shows that crypto trading in Chinese currency has not exceeded 1%. The Central Bank of China states that it is a great success for the crypto ban.
Initial Coin Offerings (ICOs) are a popular way for crypto companies to raise money; however, China restricted ICOs in September 2017. Regulators banned Bitcoin and other cryptocurrencies from being traded with Chinese currency.
Officials declared that the restriction is to protect traders from the “high-risk” of investment fraud. After that, 88 cryptocurrency exchange platforms and 85 ICOs had been shut down.
XinHua News Agency learned from blockchain analysts that “the timely moves by regulators have effectively fended off the impact of sharp ups and downs in virtual currency prices and led the global regulatory trend.”
Although China has successfully banned ICOs, there are still many people investing in blockchain technology programs. Massive cryptocurrency exchanges moved away from China, including , Huobi, OK Coin, Binance and more. These companies were the largest crypto trading platforms, and they moved their trading platforms to Singapore, South Korea, Japan and United States.
A research director from Zhongguancun e-Financial Institute said about this policy that “this indicates that the policy has been very successful. It is within expectations that the yuan’s share in global Bitcoin transactions would drop after China announced the ban.”
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