The Chinese government has no plans of stopping when it comes to the crypto crackdown. Despite the most recent crypto ban guidelines the Beijing authorities continue to issue new guidelines and find ways to prohibit crypto use. The latest in the series of actions include tracking the IP address of citizens to check whether they are mining crypto or not.
As per the latest document obtained by the Chinese crypto-journalist Colin Wu, a Shanghai Telecom document shows the IP address along with the type of cryptocurrency being mined by the address.
As per the latest set of crypto crackdown guidelines, the Chinese Central Bank deemed all crypto transactions illegal and also instructed authorities to crack down on small and medium crypto mining operations being run by many from their homes. Although the crackdown on crypto mining in May this year forced the majority of big crypto mining farms to relocate, many small and medium mining rigs were still being operated. However, with the latest measures, even that would not be possible anymore.
China’s strict stance against crypto is nothing new, but the latest set of measures taken by the authorities indicate they plan to completely eradicate crypto use.
China Set to Formulate Laws to Punish Crypto Activities
Crypto use is prohibited and banned in China however, it is not a punishable offense under current laws. Thus most of the crypto traders are just warned, however that has not deterred crypto traders and they have always found a way to bypass the crypto ban. This is the reason now the Chinese judiciary is working towards formulating new laws around the crypto market to punish crypto-related activities, be it crypto mining or trading.
Person close to the Chinese government told Caijing Magazine that the Chinese judiciary is investigating how to convict and sentence cryptocurrency behavior, and is expected to issue relevant judicial interpretations in the future. https://t.co/taeJIJQChI
— Wu Blockchain (@WuBlockchain) October 11, 2021
Many believe the growing scrutiny of the Chinese government towards crypto is because of the upcoming launch of the country’s national digital currency or CBDC digital yuan. Digital yuan’s development was completed in 2019 itself and it is currently being tested at a mass scale across the country.