On Feb. 4, the People’s Bank of China (PBOC) stated that it would maintain a high-pressure crackdown on crypto speculation.
The statement indicates that PBOC held a video conference on March 1 regarding financial market work, mapping out regulatory priorities for the country in the coming year. The meeting involved heads of local banks, the National Internet Finance Association of China, foreign currency settlement, and clearing services providers.
On Thursday, China’s central bank also announced that Bitcoin transactions from the nation had plunged to 10% from 90% of total global transactions.
Last month, the country’s supreme court warned anybody participating in crypto fundraising with up to ten years in prison.
Last May, Beijing launched one of the most extensive crackdowns on cryptocurrency trade and mining, driving key crypto exchanges and mining firms out of the country.
Commercial banks are barred from providing services to trading platforms such as over-the-counter trading desks and exchanges. In addition, such organizations’ bank accounts have been blocked or revoked, preventing crypto platforms from cashing out tokens or providing a fiat on-ramp to their users.
Regulators have also collaborated with police to monitor and track cross-border trading platform transactions. Last year, CoinDesk reported that, according to the Ministry of Public Security WeChat account, Chinese police arrested 1,100 people and eliminated 170 criminal organizations during the fifth round of a nationwide crackdown in June 2021.
These figures were even more significant in the previous year. The police force arrested more than 311,000 people and eliminated 15,000 criminal organizations regarding money-laundering activities.
Over the previous decade, Beijing has stepped up its crackdown on cryptocurrency trade and mining, contributing to the plummets. The nation outlawed centralized crypto exchanges in 2017 and banned Bitcoin trading in 2013.