The Chinese authorities continue to put pressure on the cryptocurrency community, restricting the citizens in their ability to invest and withdraw funds abroad. In May, the State Council banned the financial organisations from keeping and facilitating payments in cryptocurrency, and the National Development and Reform Commission offered a plan for complete liquidation of mining in China.
On 24 September, the list of restrictions was extended:
- Provision of crypto services by banks and financial organisations, including payment settlements between organisations in any way engaged in cryptocurrencies
- Any commercial activity involving cryptocurrencies, be it a sale, exchange or informational support
- Fundraising and donations in cryptocurrencies
- Provision of services to the residents of China by foreign cryptocurrency exchanges
- Any cryptocurrency adverts, including the monitoring and «early warnings» of their identification (this requires constant backup copying of mining mentions).
This is not a complete list of restrictions that has been published. This time not only legal entities but individuals alike have gone under attack. In particular, technical, marketing and other types of support of foreign cryptocurrency exchanges have been classified as illegal activity.
Bitcoin reacted modestly to the new restrictions whose history began in 2013 and has already restored its positions. And the tokens of decentralised exchanges received a strong boost: UNI had added 22%, and SUSHI – 18% in 24 hours.
The Chinese authorities are restricting financial organisations from working with their citizens in the cryptocurrency sphere, but they cannot restrict the p2p market where decentralised exchanges (DEXes) like Uniswap reign. Essentially, this is exchange between people via decentralised protocol. There is no centre that could be banned or restricted in its operation. The director of research and development at Synergy Capital believes that the world is in for a big shift into everything decentralised.
The largest exchange by the number of registered Chinese users Huobi announced on 26 September that it would close all of the accounts of its users from the Celestial Empire. A part of them will be transferred to a DEX, which will create additional support for the UNI and SUSHI tokens. Meanwhile, Justin Sun (Tron founder) notes that new restrictions will not substantially affect the market as the people still have the right to buy, sell and exchange cryptocurrency.
Analytical group StormGain
(a platform for trading, exchanging and safekeeping cryptocurrencies)
