China’s crackdown on cryptocurrencies doesn’t seem to see an end as the Central Bank deemed all crypto transactions illegal at the start of the year. The set of crypto crackdown guidelines issued just recently were said to be the most comprehensive one as it cracked down on every aspect of crypto be it crypto mining or trading. However, the government has no plans to stop as recent insider news suggest that the Chinese judiciary is now looking to formulate laws to convict and sentence crypto-related activities.
Earlier, the government had only warned against crypto use as it is not protected by the law, however now it seems the Chinese government aims to make crypto-related activities a criminal offense that might attract jail time. Chinese Journalist Colin Wu reported that people close to the government in an interview to the local magazine revealed government plans of possible new laws around crypto offenses.
The Chinese government defines all commercial activities involving cryptocurrency as illegal financial activities. However, the current law cannot be applied, so an interpretation by the judicial authority is required.
— Wu Blockchain (@WuBlockchain) October 11, 2021
While crypto activities are illegal, it is not punishable under existing laws, and thus the judiciary is looking into formulating new laws altogether.
Will China’s Move Impact Crypto Market
The latest news comes just weeks after the recent complete crypto crackdown guidelines issued by the People’s Bank of China. This infers that the Chinese government is still looking for ways to make crypto use obsolete in the country. The main reason could be the decentralized nature of the crypto market, because of which despite nearly a dozen ban announcements, traders often find a way to trade their digital assets.
The search for Defi had skyrocketed post recent crackdown announcements as the central bank also prohibited foreign exchanges from offering their services in mainland China, something Chinese traders used to bypass the local ban on crypto exchanges. Thus, the government believes only a punishable offense could discard people from getting involved with it.