Investors in bitcoin and cryptocurrency will no doubt be aware that it is struggling right now, and this is, in no small part, down to China having stepped up its crackdown on bitcoin trading and mining. In addition to this, they have also played a part in blocking a number of cryptocurrency-related Weibo accounts (a similar social media platform to Twitter) at the start of June.
However, the anti-Bitcoin action looks as though it is set to continue – with some suggesting that any illegal crypto activities in China will be linked directly with their criminal law system – which has a number of repercussions on the crypto market.
A Campaign Against Crypto
In May 2021, the government in China threw its weight against Bitcoin trading and mining, which has had a huge impact on cryptocurrencies worldwide. They have created an escalating campaign against Bitcoin that seems to be gaining more and more traction. This comes after three industry bodies banned cryptocurrency-based payment services such as Bitcoin and ether.
Straight after this, the Chinese state denied access to several crypto-based Weibo accounts, stating that each of these accounts “violates laws and rules”. It appears that in China, it is ‘judgement day for Crypto’ and anyone who advocates it on social media platforms.
It is now more than clear that there is no place in China for entrepreneurs and businessmen such as Elon Musk – a one time advocate of the booming cryptocurrency market.
Crypto – A Link With Criminals?
There is now no doubt that in China, there seems to be a digital war taking place. As a result of this, it seems more likely than ever now that the Chinese Supreme Court will publish a judicial interpretation that may well link cryptocurrency mining and trading business with the Chinese body of criminal law.
Up until this point, there has been a certain ambiguity that has yet to fully identify bitcoin trading as “illegal operations”. To date, any rules that have been applied against cryptocurrency and trading have only been published by administrative bodies, meaning that the legal standpoint has been somewhat difficult to establish.
A Lack of Regulation
Now, even Chinese media has turned against the cryptocurrency markets and trading. The Xinhua news agency has turned its attention to publishing articles that cover a series of cryptocurrency-related scams. This highlights the fact that up until now, cryptocurrency has been underregulated. As such, not only has it been involved in numerous scams, but may well have links to black-market trading, money laundering and even arms trading.
However, this move also comes as the central bank of China is speeding up the testing of its very own digital company, meaning that cryptocurrency may well have life in it yet.
Is There a Way Back
Admittedly, Bitcoin is having trouble, exacerbated by the campaign against it formulated by the Chinese government. However, this by no means spells the end of crypto. More and more businesses and countries are accepting it – with some even seeing it as an inevitable way forward. Huge business conglomerates, such as the NHL are now accepting it as a valid payment method – and El Salvador has even made Bitcoin legal tender in the country, with Panama looking set to follow. This may be a bumpy time for crypto, but there are rays of sunshine out there.
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