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Chinese Government “forgets” Previous Blockchain support and Bans All Crypto Events
Editorial Team

After fostering local financial authorities to accelerate the development of Blockchain technology, the Chinese government banned all commercial crypto and Blockchain-related events in the country.

Red Li, the co-founder of 8BTC and Chinese cryptocurrency researcher on August 22 shared a text released by the Chaoyang District government in Beijing which ordered local financial authorities and police to ban offices and hotels from hosting crypto-related events.

In the recent past, those events were banned by local police, during a period in which the Chinese government was in process of implementing new regulatory frameworks regarding crypto trading.

This time the government explained its stance on crypto trading and repeated that while it supports the development of Blockchain technology, it expressed its firm resistance to trading digital assets on cryptocurrency exchanges.

According to analysts, this ban was imposed as a part of a larger initiative to implement stricter capital controls to halt local investors from utilizing cryptocurrencies as an instrument to move funds outside of China to overseas markets.

Simultaneously, the government created a task force to crackdown on local investors storing their wealth in overseas markets to evade taxes and requested financial authorities to investigate in the savings accounts and assets owned by millionaire investors, as resumed.

The timing of the banning is in the same period during which the government is strictly prohibiting investors from storing wealth in alternative stores of value, but the final banning decision was unforeseen by local analysts and experts, because of the optimist governmental stance over Blockchain and Distributed systems.

Earlier in 2018, CCTV, the state-owned national television channel of the country has reported that the Blockchain could have an impact 12 times larger than that of Internet on the global economy and society.

“Blockchain is the second era of the Internet. The value of Blockchain is 10 times that of the Internet. Blockchain is the machine that produces trust,” CCTV reported.

Additionally, these positive remarks were followed by the surprising governmental decision to allocate at least $3 billion to fund emerging Blockchain projects and startups.

On May 24, the State Council of China promoted local financial agencies and technology centers to speed up the development of the Blockchain in order to commercialize those systems at a larger scale.

“To build a regional equity market in Guangdong, according to the opening up of the capital market, timely introduction of Hong Kong, Macao and international investment institutions to participate in transactions. We will vigorously develop financial technology and accelerate the research and application of Blockchain and big data technologies under the premise of legal compliance,” the council said.