Xinhua News Agency, a Chinese state-backed media organization, recently publicly voiced support for Chinese regulators who have taken a firm standpoint against cryptocurrency crimes. The media organization recently published an editorial piece, penned by Pan Ye, supporting the China's zero-tolerance policy for crimes that involve, or are facilitated by, digital currency.
The strongly worded article listed several concerns which the regulatory body should consider, as the government is in the process of grappling with blockchain technology. A few weeks ago, China announced that they will implement a ban on both initial coin offerings (ICOs) as well as all domestic cryptocurrency activity.
The article encouraged the Chinese government to adopt an “iron fist governance” approach when it comes to cryptocurrency regulation and investing activities. Xinhua enjoys the title of the official government news and media outlet. The president of Xinhua is also a member of the Chinese Central Party's Central Committee. Considering the close links between the Chinese government and Xhinua, many have criticized the news outlet for outright propagating governmental agenda. Experts have considered his last editorial to be a possible glimpse in China’s view on cryptocurrencies in the future.
The damning editorial opened by explaining the events regarding China's decision to prohibit ICOs and to ban all domestic cryptocurrency trading. To explain this decision, the article stated that cryptocurrencies have been the primary choice for cybercriminals. This suggests that cryptocurrencies have been used for all sorts of crimes, from money laundering to drug trafficking, smuggling, illegal fundraising, and other illicit activities. According to the article, the reason for this is mainly due to the inherent anonymous feature of bitcoin and other cryptocurrencies.
Despite the editorial’s obvious disdain for cryptocurrencies, Xinhua embraced a generally tolerant position towards blockchain technology and the regulation thereof. According to the article, there are still several gaping holes when it comes cryptocurrency regulation. The article called for these vulnerabilities to be addressed by the relevant financial authorities as soon as possible.
According to the author of the piece, a strong regulatory policy would allow China to establish a sound infrastructure for cryptocurrencies. Moreover, blockchain technology could be an important aspect of future transactions, despite strict regulation in the industry.
Since China announced its ban on ICOs and cryptocurrencies, all digital trading platforms, except for OKcoin and Huobi, have stopped operating in the country. The bold move has raised concerns among investors that China might seek to control the industry in the future. Moreover, other countries, such as South Korea, have followed suit. Malaysian authorities have hinted at a possible ban at the end of 2017.
The strongly worded article listed several concerns which the regulatory body should consider, as the government is in the process of grappling with blockchain technology. A few weeks ago, China announced that they will implement a ban on both initial coin offerings (ICOs) as well as all domestic cryptocurrency activity.
The article encouraged the Chinese government to adopt an “iron fist governance” approach when it comes to cryptocurrency regulation and investing activities. Xinhua enjoys the title of the official government news and media outlet. The president of Xinhua is also a member of the Chinese Central Party's Central Committee. Considering the close links between the Chinese government and Xhinua, many have criticized the news outlet for outright propagating governmental agenda. Experts have considered his last editorial to be a possible glimpse in China’s view on cryptocurrencies in the future.
The damning editorial opened by explaining the events regarding China's decision to prohibit ICOs and to ban all domestic cryptocurrency trading. To explain this decision, the article stated that cryptocurrencies have been the primary choice for cybercriminals. This suggests that cryptocurrencies have been used for all sorts of crimes, from money laundering to drug trafficking, smuggling, illegal fundraising, and other illicit activities. According to the article, the reason for this is mainly due to the inherent anonymous feature of bitcoin and other cryptocurrencies.
Despite the editorial’s obvious disdain for cryptocurrencies, Xinhua embraced a generally tolerant position towards blockchain technology and the regulation thereof. According to the article, there are still several gaping holes when it comes cryptocurrency regulation. The article called for these vulnerabilities to be addressed by the relevant financial authorities as soon as possible.
According to the author of the piece, a strong regulatory policy would allow China to establish a sound infrastructure for cryptocurrencies. Moreover, blockchain technology could be an important aspect of future transactions, despite strict regulation in the industry.
Since China announced its ban on ICOs and cryptocurrencies, all digital trading platforms, except for OKcoin and Huobi, have stopped operating in the country. The bold move has raised concerns among investors that China might seek to control the industry in the future. Moreover, other countries, such as South Korea, have followed suit. Malaysian authorities have hinted at a possible ban at the end of 2017.