It’s that time of the month again as the Chinese Central Bank or the People’s Bank of China (PBOC) has once again loaded the China FUD and declared all crypto-related transactions as illegal on Sep 24. A circular issued and available on the official website titled “Notice on Further Preventing and Disposing of the Risk of Speculation in Virtual Currency Trading” states that Bitcoin and another virtual currency trading “is prevalent” and “disrupting the economic and financial order”.
China FUD: What Specifically Happened?
The China FUD launched in the form of news reporters inquiring the central bank administration regarding their policy on crypto-assets trading. PBOC has accused cryptocurrencies of money laundering, illegal fundraising, fraud, pyramid schemes, and other illegal activities. The circular reconfirms the obvious that cryptocurrencies aren’t legal tenders and they are risky. It has prohibited the financial institutions inside the mainland from providing any services related to digital currencies and asked them to wind up any such existing operation.
Apparently, it also contains a warning to overseas companies providing any such services in China. To wrap it up, the PBOC has declared its resolve to strengthen coordination between different departments and develop new mechanisms for cracking down on the cryptocurrency industry. It remains unclear as to how effective it’s going to be as Bitcoin mining already got a ban in China and it has been already known that the crypto industry isn’t viewed favorably. However, that doesn’t usually stop the China FUD from propping up every once in a while.
All blockchain explorers are functioning as usual and there are no reports of any crypto transactions failing after the recent China FUD. On the trading front also, all top ten crypto-assets by market capitalization are holding pretty well showing less than 3% depreciation, after the news first broke a couple of hours ago. It appears that the China FUD has lost its appeal and the sway on the markets that it once had.
