After Xi Jinping asked to support the development of Blockchain in the Asian nation, China closed exchanges demonstrating that it maintains its anti-crypto stance.
It is a fact that the PBoC (People’s Bank of China) is fulfilling its promise to get rid of any activity it discovers under its jurisdiction. This was stated at the time:
“Once it is discovered, it will be removed immediately and prevented from happening before.”
A tweet from the Chinese blockchain firm called @CnLedger, shows that China closed a total of 173 cryptocurrency exchanges:
The 173 Chinese virtual currency exchange and token issuance platforms have come out without risk, says the China Financial Stability Report issued by the PBoC ’(2019).
Bitcoin’s price has been the lowest since May 2019, stepping on the psychological barrier of USD $ 7,000 and with strong intentions to fall further.
The main reason for the fall, it was commented at the time, was related to China, following the PBoC’s statements, warning that, while establishing financial standards, including Blockchain, it also took measures to maintain the trade ban of cryptocurrencies, especially against exchanges that operate illegally in the nation.
This happened after in October, as DiarioBitcoin reported, Chinese President Xi Jinping issued statements requesting support for the development of Blockchain technology, which caused an increase in cryptocurrency commercial activity in the Asian giant, as well as in Blockchain media exposure.
China closes exchanges
According to ZyCrypto, it is clear that China does not want to go back in its anti-cryptocurrency stance and is fulfilling its promise. This, despite the fact that it now shows itself as a “pro-Blockchain” nation, which seems to be a fairly ambivalent position according to media and analysts.
On the other hand, there is the possibility that the authorities are simply trying to eliminate all forms of competition, since they are a little closer to the launch of the Chinese central bank (CBDC) digital currency, the digital yuan, which will be launched at the beginning of 2020.
Also, says the ZyCrypto media, the closure of all these exchanges could and could have some serious effects on the Bitcoin market, and cryptocurrencies in general. And he adds that China, despite its unfavorable crypto climate, is still easily one of the most vibrant places in the world for the sector.
If the government continues to stifle cryptocurrencies, there will probably be a domino effect in the markets.