China have clamped down on any speculation that is to do with cryptocurrency but by the looks of things, they are open to blockchain development. Of course, it should be noted that Beijing are still trying to do everything they can to limit the speculation on currency and this is largely due to the fact that they have banned the sales in their initial coin offerings. In August, various authorities have come to the realisation that there have been some illegal fundraising activities being done and these are operating under the disguise of them being cryptocurrency. One major district in Beijing has even come out to ban any cryptocurrency events. Local government investments have stood out as being over $3.57 billion and this happened a couple of years ago. This is being used to try and calculate new estimates for future events. Chinese authorities look to have stepped up the amount of pressure they are putting on any cryptocurrency activities and this has been happening for weeks now. It should be noted that Beijing have openly supported the development of the blockchain and they are still trying to create a network for this. The one thing that you should know about blockchain is that it has the ability to create a secure and even a permanent record of transactions. This is done between two parties and you don’t even need to have a third party intermediary either. Bitcoin was actually the first technology to try and use this. Ever since, hundreds of technologies and even applications have merged. The price eve skyrocketed last year and so many investors stated that blockchain could transform the world in the same way that the internet did. Major companies and even governments are doing everything they can to try and test out the technology but they have not found a way to try and prove the benefits on a huge scale yet.
China once dominated the idea of Bitcoin trading and they are still able to account for the majority of Bitcoin creation. They do this via the mining process. The problem is that there has been an increased level of scrutiny and this is especially the case when you look at how much the Bitcoin price has climbed. It has even culminated in the central bank and some of the other financial authorities have even stopped the sale of it as well. This is being done through ICOs and this happened last September. Beijing has also been able to ban the trade between Bitcoin and the Yuan as well but there is not much else that can be said about this.
We can say however that at the same time, US inventors have been very interested in the Bitcoin. The same concept applies to South Korean and even Japanese inventors as well. Chinese projects have moved some of their HQs overseas and the development is carrying on to this day. Some have even said that it is possible to trade cryptocurrencies to this day and you can even trade the Yuan with Bitcoin if you do it over the counter in other countries. That being said, the amount of speculation has not gone unnoticed. There are five government bodies and this includes the People of China have come out to issue a warning. They have stated the risks of illegal fundraising and this has been under the guise of the blockchain. The announcement has come out to warn of those who are targeting Chinese investors as well so this is something that does need to be taken into account. On that very same day, Tencent, the technology giant has stated that they are going to stop all cryptocurrency related applications. They are doing this through the WeChat Pay. This is a mobile payment function and it is also to do with the Chinese mobile messaging app. They have blocked some of the WeChat accounts that have been publishing information regarding the coin offerings and even trading that has happened to violate the government body in the past. The company have also released their own statement to CNBC as well. The system shares updates for free so there is absolutely no need for people to pay for this information either.
The Chaoyang District includes the central business area. They have also happened to issue a ban on any shopping areas and even on office called National Business Daily. They have announced that they are going to have an economic development zone and that this is going to be held in the development zone in the city of Guangzhou. The government in China want to do whatever they can to try and maintain financial stability and they also want to try and regulate any activity. This includes money soliciting as well, from ordinary people who just want to invest. This is according to the managing director over at HCM Capital, Jack Lee. The company is an investor in a ton of blockchain projects and he also operates the Foxconn private equity firm. HCM don’t expect any regulators to ease any restrictions regarding cryptocurrency investing even though the government has worked hard to try and embrace the blockchain technology. In a speech that has been done by Xi Jinping, the Chinese President, it would seem that blockchain is considered to be a breakthrough. The communist party also published a book and this is very interesting to say the least. Both Shanghai and even Nanjing have announced that they have their own blockchain investments and this makes for a total of around $3.57 billion. Of course, the regulatory changes are going to affect the cryptocurrency world and it is also going to affect private investors as well. This is especially the case when you look at the fact that everything ins pretty steady at the moment. So it is important to know that BlockVC is pretty good at the moment and this counts Beijing among some of their main offices. They are investing in 40 or 50 blockchain related projects and Mingxuan Li are their chief operating officer. They have stated that the company’s own focus is trying to be more on the fact that they are trying to develop and work on new technology. They have also stated that it is very typical for one Chinese person to have more than one friend who is involved in the blockchain. They will not hesitate to convince you to try and join them. This will mean that blockchain can spread even faster and this is especially the case when you look at the development of the blockchain and how it is going to spread in the country so far. China has the best population to try and test these applications on a much larger scale.
Cryptocurrency prices have risen by a huge amount but they have remained relatively consistent. The problem is that everything could change at any moment.