The People’s Bank of China (PBoC), China’s central bank, has announced that all cryptocurrency exchanges and peer-to-peer (P2P) trading platforms on the Mainland have been shut down. However, it appears that the authorities are still conducting a battle against crypto mining, with many enthusiasts said to have gone underground.
According to Lanjinger, the PBoC has produced its last quarterly report for the fiscal year 2021, in which it made a variety of assertions regarding the effectiveness of its crypto crackdown, which was implemented in September last year.
The authors of the bank report said that domestic “virtual currency trading and token issuance financing platforms” had been shut down, and that access to international crypto and FX trading platforms had also been “restricted.”
The PBoC claimed that its actions have reduced the risk of “shadow banking” and eliminated harmful kinds of uncertainty in the economy.
However, eradicating cryptocurrency in a country that was once the epicenter of the sector is proving difficult. According to GWI statistics from 2018, a stunning 31% of Chinese internet users utilized Virtual Private Networks (VPNs) at the time, however more recent data is not available. While the authorities have sought to discourage VPN use by fining users about USD 150 for using the program, statements made by one participant during the Winter Olympics in Beijing appear to imply that VPN use is very much alive and well in the Middle Kingdom.
Eileen Gu, an American-born Chinese air freestyle skiing gold winner, said on social media that “anyone may download a VPN” in China, according to Protocol. The message appears to have been suppressed or deleted, demonstrating that VPNs continue to irritate Chinese cyber authorities.
Using VPN’s to Trade
Despite the fact that crypto trading has grown more difficult than ever, many Chinese bitcoin (BTC) fans are said to remain active in the market, utilizing VPNs and stablecoins such as tether (USDT) as a gateway. Over-the-counter (OTC) trading is also believed to be active.
And, despite assertions that crypto mining has been eradicated, it appears that the battle to rid the country of miners is far from done. CLS reported that Guotai Junan Financial, one of China’s largest securities firms, had issued a notice warning its staff that mining cryptocurrency may result in a penalty.
Last year, state organizations reported that a stunning 21% of illicit, post-crackdown crypto mining in China was tracked back to publicly held enterprises and offices.
