China intensifies the pressure on cryptocurrencies as the Shanghai Head Office of the country’s central bank issued a warning to investors, prompting for increased risk awareness towards the field.
Cryptocurrency Clampdown
The central bank of China in its Shanghai Head Office has issued yet another warning for investors to increase their awareness of the risks of cryptocurrencies and initial coin offerings, reports Reuters.
This is not the first time an official institution made warnings of the kind. In August, Live Bitcoin News reported that the Banking Regulatory Commission, The People’s Bank of China, the Ministry of Public Security, and the General Administration of Market Supervision, have jointly issued a formal public warning against fake cryptocurrency schemes.
The previous warning followed what’s purportedly the biggest Bitcoin (BTC) heist in the country. As a result of the same, three people have been put behind bars.
The latest warning, though, comes out of the blue, especially after it makes the news days after the Supreme People’s Court of China allowed blockchain technology to authenticate evidence.
Mixed Signals
China’s stance towards the field remains fairly controversial. While the country clamps down on cryptocurrencies, it seems to be rather receptive of the technology which underlines them.
Earlier in August, marketing startup Atlas Protocol managed to close a multi-million dollar funding round which was reportedly led by Chinese investors. The country also recently announced the launch of another major $1.5 billion investment fund which is dedicated towards blockchain-based technologies.
Furthermore, cryptocurrency traders are purportedly taking advantage of Tether and VPNs to bypass the nationwide ban on digital currencies. It seems that the country is pro-blockchain but against cryptocurrencies.
What do you think of China’s position on cryptocurrencies? Don’t hesitate to let us know in the comments below!
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