October 12, 2021

China Is Enacting Law To Ban Cryptocurrency?

 Aggressive measures against crypto are increasingly heating up with actions from the Chinese administration that have not ended. This became even more alarming when China began announcing that all crypto transactions were illegal earlier this year.

Today, the Chinese administration has updated the crypto prevention guide which is considered the most comprehensive to date as it covers every side in crypto from crypto trading to crypto mining.

So far there are no signs that the administration will soften. There are even reports that the Chinese judiciary is working to formulate laws to convict and impose punishment for crypto activities.

Previously, the administration only warned not to get involved in the use of crypto but now the government is seen to have the intention to make activities related to crypto as a criminal offense that allows offenders to be sentenced to prison.

The Chinese government defines all commercial activities involving cryptocurrency as illegal financial activities. However, the current law cannot be applied, so an interpretation by the judicial authority is required.

- Wu Blockchain (@WuBlockchain) October 11, 2021

This was reported by Chinese journalist Collin Wu based on sources close to the government. So far even though the crypto activity is illegal, it still cannot be prosecuted based on the existing law. As such, the judiciary is working to formulate new laws.

The latest news comes just weeks after crypto prevention guidelines were released by the People’s Bank of China. This shows that the Chinese government is still looking for ways to curb crypto activities. Such a move has had a positive impact on the Defi sector.