China said to escalate crackdown on cryptocurrency trades

(iStock)

Beijing – China is escalating its clampdown on

cryptocurrency trading, targeting online platforms and mobile apps that
offer exchange-like services, according to people familiar with the
matter.

While authorities banned cryptocurrency exchanges last year, they’ve
recently

noted an uptick in activity on alternative venues. The government plans
to block domestic access to homegrown and offshore platforms that enable
centralised trading, the people said, without being more specific about
how policy makers define such platforms.

Authorities will also target individuals and companies that provide
market-making, settlement and clearing services for centralised trading,
the people said, asking not to be named because the information is
private. Small peer-to-peer transactions aren’t being targeted, they
said.

Bitcoin fell 1.2% to $13 580.50 at 12:36, according to Bloomberg composite pricing.

The Chinese government’s rolling clampdown has roiled global markets
for bitcoin and other digital tokens over the past few months.
Regulators around the world are stepping up

scrutiny of cryptocurrencies amid concerns over excessive speculation,
money laundering and tax evasion.

Up until early last year, China was the most active market for
bitcoin trading on exchanges. It’s still home to some of the biggest
bitcoin miners, though they’ve begun looking

elsewhere as local authorities call for curbs on the industry.

China’s central bank didn’t immediately respond to a faxed request for comment.

* Sign up to Fin24’s top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER