After closing down exchanges and other related businesses, China is going after crypto community forums like Coin World
- Bishijie, a Chinese cryptocurrency community and information provider, has shut services within Mainland China.
- The company is also called '
Coin World' and said it's actively cooperating with regulators and taking corrective measures.
- The last few years were great for the
cryptomining community in China, but the May crackdown changed everything.
- Now, there are no easily accessible crypto exchanges for the average Chinese citizen.
The Biworld APP and website will cease operations in China with immediate effect.
Also called Coin World, the site was most well known for providing news, social network services, and trading information to Chinese users.
In a statement, the company said that it is actively cooperating with regulators and taking corrective measures. The site is no longer presenting any fresh updates, and the company has not indicated when it will be operational again.
Jiemian says Chinese #bitcoin and #cryptocurrency news platform https://t.co/Ws7q7WXUq5 would halt operation of app… https://t.co/6NVuuOe5hf— CN Wire (@Sino_Market) 1626337118000
Bishijie did not specify why it was shutting down altogether, but Coin World was already being investigated by the authorities for illegal token issuance in 2019, according to local media.
China made it very clear early on that it isn't a fan of decentralised currencies and vowed to take action against the rising trend. The last few years were great for the crypto mining community as they could leverage affordable energy to dig out tomorrow's gold. But the party came to an end in May, when provincial governments were tasked with a massive crackdown that spared nobody. Bitcoin's hash rate reached a record low within no time, and all businesses based out of China either shut shop or moved out.
"Whether involved in the direct trading of cryptocurrency or providing relevant information services, they are within the scope of the government's crackdown, mainly for the concerns that cryptocurrency will cause systemic risks," said Chen Bo, Director of the Digital Finance Research Center at the Central University of Finance and Economics, Beijing in a Global Times article.
The Global Times is a mouthpiece of the Chinese Communist Party (CCP). Further, it adds that Bishijie was listed as an abnormal business by the Market Supervision Administration in Beijing because its contact wasn't possible via its registered address.
China's crackdown is decisive, and there's no going back.
The authorities have made up their mind about cryptocurrencies, and there's no going back. But it doesn't mean they've abandoned the technology altogether. China is piloting CBDC (central bank digital currency) instead of a decentralised system to ensure it's not left behind in the technological race.
It has already released e-yuan, a digital representation of physical yuan that has been in the works since 2014. The People's Bank of China (PBOC) has spearheaded the project, and real-world trials are currently underway. While a nationwide roll-out is still pending, testing is underway in Beijing, Chengdu, Shenzhen, Suzhou, and more. It involves the local government handing out a certain amount of yuan via a lottery. Users usually have to download a separate app to receive the currency. The system is officially called Digital Currency Electronic Payment (DCEP).
Private companies like Alipay and WeChat dominate the current payments landscape in China. The government isn't comfortable giving critical data access to corporates and intends to control and administer the payments industry directly. Unlike cryptocurrencies, China's CBDC solution is closely monitored by a central authority, and the primary motive is to phase out coins and notes.
For a more in-depth discussion, come on over to Business Insider Cryptosphere — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve.
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