In the past year the cryptocurrency market was hit with many heavy blows of government officials from the Chinese government. The market was hit like a warrior, however the combination of attacks has resulted in a number of cryptocurrency investors. The poor performance of the market in 2018 is a distant memory to the massive gains of 1,000 percent in 2017.
Since 2013 in the year 2013, the Chinese government has taken steps in order to control cryptocurrency however not as much as the measures implemented in the year 2017. (Check the following article to find a thorough review of the official notice that was issued from China’s Chinese government)
The year 2017 was a record year for the cryptocurrency market , with all the attention and growth that it has attained. The high volatility of prices free trading signals forced to the Central bank to adopt more drastic measures, such as the prohibition on initial coin offering (ICOs) and the clampdown on the local cryptocurrency exchanges. Then, mining facilities in China were ordered to shut downdue to the high consumption of electricity. Many factories and exchanges have relocated to foreign countries to avoid restrictions, but they remain open for Chinese investors. However, they are unable to escape the grasp of the Chinese Dragon.
In the most recent of government-led initiatives to monitor and regulate trading in cryptocurrency by Chinese traders, China extended its “Eagle Eye” to oversee cryptocurrency exchanges in foreign countries. Bank accounts and banks suspect of conducting transactions using foreign cryptocurrency exchanges and related activities are subjected measures ranging from limiting the amount of withdrawals to the freezing of accounts. There are even persistent rumors within the Chinese community about more severe measures that will be enforced on foreign platforms that permit trading between Chinese investors.
“As for whether there will be further regulatory measures, we will have to wait for orders from the higher authorities.” Excerpts from an interview conducted with team leader of Chinese Public Information Network Security Supervision agency, which is part of the Ministry of Public Security, 28th February
Why why WHY! ?
Imagine your child putting their savings to purchase a digital product (in this instance it’s cryptocurrency) which he or she does not have a way to verify its bitcoin trading signals legitimacy and worth. They could get lucky and make it big or even lose everything in the event that the crypto bubble explodes. Now multiply that number into hundreds of millions Chinese citizens, and we’re speaking of billions in Chinese Yuan.
The market is rife with frauds and ICOs that are useless. (I’m certain that you’ve been told about people who send coins to random addresses , with the promise of double their investment, and ICOs that aren’t worth your time). Many investors who aren’t savvy are only interested in the money, and ignore the technology and the innovation behind it. The value of many cryptocurrency is determined by market speculation. In the year of the crypto-boom take part in any ICO that has a renowned advisor with a promising team, or a credible hype and you’ll be sure to get at least 3X the value of the amount you invest.