China to Target Domestic Crypto Dealers on Overseas Platforms: Report
Chinese authorities are reportedly gearing to inspect domestic cryptocurrency traders further by threatening to have their assets frozen.
In what could cement China's closing crackdown on cryptocurrencies, regulators are targeting national investors who continue to partake in crypto trading through overseas cryptocurrency platforms, Bloombergreports. Citing discreet resources, the report asserts that authorities could inspect bank and online-payment accounts belonging to individuals and companies who have circumvented China's ban on national crypto exchanges by tapping into overseas exchanges.
«The accounts' owners may have their assets frozen or be obstructed from the domestic financial system.»
The reported move comes within weeks of a report by a newspaper run by China's central bank that called for an effective ban and blockade of foreign cryptocurrency exchange sites to keep investors from participating in trading and ICOs.
China was formerly the world's largest trading marketplace for cryptocurrencies up to turn of 2017 before Chinese authorities led a crackdown beginning with onsite inspections of exchanges that finally resulted in their shuttering in September 2017. The global trading volume of cryptocurrencies in Chinese renminbi (RMB) dropped from over 90 percent at China's peak dominance to less than 1%, the PBOC-affiliated earlier said this month.
The crippling curbs have resulted in an exodus of Chinese cryptocurrency business, especially miners, who have relocated to friendlier jurisdictions in Canada and Switzerland.
By targeting Chinese citizens continuing to purchase and trade cryptocurrencies, China's crackdown is perhaps nearing its final gong. The influence on crypto markets of the countryare immaterial at this juncture. Cryptocurrency markets at the turn of 2017, prior to China's hostile moves, were valued under $20 billion. In January this year, the general crypto market cap reached an all-time high of $795 billion.