Use of Chinese Yuan in Bitcon Transactions falls Dramatically after Regulatory Crankdown.

A Chinese news agency, Xinhua, has revealed that the share of the Chinese Yuan's bitcoin transaction has dropped dramatically, the implementation of Chinese government's decision to ban restrictions in the world's second-largest cryptocurrency business and the ICO After deciding to do dramatically fall.

Cryptow Trading Shutdown in China

Since September 2017, Chinese officials have included in the series of aggressive crackdown on crypto related activities in the country. They banned the initial coin offer (ICO) for the first time and later banned the Cryptocurrency exchanges. Before the restrictions, Yuan's share of global bitcoin transactions exceeded 90 percent.

Worried by the situation, Chinese regulators feared that Bitcoin-Yuan trade was being used to stop tax laws and Anti Money Laundering (AML) laws. There are also some strict capital control measures in the world in China, so there was a great danger of using bitcoin to export capital from China illegally.

In response to these fears, the Central Government established a ban with the aim of seriously reducing the popularity of crypto in the country. According to the Xinhua report, since September 2017, 110 platforms offering cryptocurrency exchange services were discontinued by the Chinese government, especially including BTCC, HUBI, OKKOIN and BINANES, all of which went abroad. .
In the same period, Chinese officials stopped 85 ICO exchange platforms. Cryptocurrency trading was completely prohibited, regulators were going to work with payment services like Alipe to identify and close over 3,000 accounts engaged in paper-to-peer cryptocurrency trading.

"Successful policy"

According to the report, the policy has been very successful, which has seen a sharp decline in the Yuan-Betakoine Transaction Volume in less than a year. The People's Bank of China (PBC) data shows that policy measures have reduced the global share of the era by declining declines of 90 percent, below 90 percent, without any risk, in the bitcoin transaction.

It has also been said in the report that restrictions on Bitcoin trading are unlikely to be picked up very soon as serious investment fluctuations are seen as risk for Chinese investors. Many experts also say that they expect to pursue policy based on such success. Speaking about the policy results, Guo Dazi, research director of the Zhonggun Internet Finance Institute said:

"This indicates that the policy has been very successful, it is within the expectations that after the announcement of China's ban, the share of Yuan will be dropped in the global bidocaine transaction, fluctuations for bitcoins are very large and clearly investors Very risky. [Many Chinese investors] could not bear such risk. "

BTC Manager had previously stated that despite the actions of countries like Thailand, Philippines, Australia, Malta and Japan to control the crypto economy and open it for investment, Chinese regulators have to move Chinese crypto platforms and miners abroad. Has forced.