Chinese Province Regulators Warn on Illegal Crypto Fundraising Schemes

China’s southern Hainan province has issued a warning against operators who run illegal cryptocurrency-related fundraising schemes, as the country keeps strengthening its tough stance against the industry. According to Reuters, citing local media outlet, Nanguo Metropolis, financial regulators from the island province, including branches from the People’s Bank of China (PBoC), have cautioned on illegal crypto activity across the zone.

“No organization or individual in Hainan Province shall illegally engage in token issuance and financing activities; any so-called token financing platform shall not engage in the business of exchange between legal tender and tokens or ‘virtual currencies’, and shall not buy, sell or act as a central counterparty to buy or sell tokens,” the regulators stated.

Moreover, authorities issued another warning targeted to financial institutions forbidding them not to directly or indirectly provide their services with crypto platforms whatsoever, reminding them of the existing rulings about the long-lasting nationwide virtual currencies ban.

Recent China Crackdown on Crypto Mining Crypto Mining Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Read this Term

During a Financial Stability Committee of the State Council meeting held last month, China’s Vice Premier, Liu He, specifically mentioned that the country will clamp down the crypto mining and trading activities. The official cautioned on the 'potential risks' that crypto markets carried for investors and enhanced the government’s harsh rhetoric towards the industry.

Although there has been a ban on cryptos in China since 2017, the country is one of the largest Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term mining hubs. In fact, there are reports on the Chinese crypto mining industry taking a share of around 70% globally. “We should crackdown on bitcoin mining and trading activities and prevent individual risks from being passed to the whole society,” Liu said in regards to recent China’s crackdown.

Such recent statements from the Chinese officials helped fuel the recent sell-off seen in the crypto markets, specifically on Bitcoin prices across the board.