Sunday, 5 Feb 2023

China Intends To Obstruct 124 Foreign Crypto Exchanges Access

Chinese regulators will block more than 100 exchanges of cryptocurrency that are overseas, offering commercial services to domestic investors.

The Shanghai Securities Times reported on Thursday that China National Fintech Risk Rectification Office has identified 124 trading platforms with IP addresses in abroad, but are still available in the country.

China Intends To Obstruct 124 Foreign Crypto Exchanges Access

The office is now planning to intensify its efforts in the field of space surveillance and block access to those platforms, according to the report.

China National Fintech Risk Rectification Office, recognized in 2016 by the State Council of China, is a government agency that wants to protect against the financial risks associated with problems such as loans amid individuals and the trading of cryptos.

In September 2017, the People’s Bank of China announced a rule for banning of ICOs and, in fact, cryptocurrency trading platforms in the country. Following the announcement, the major exchanges located in China at that time changed their activities abroad.

At present, Internet access to several major markets, such as Binance, Bitfinex, and OKEx, does not appear to be reachable in China.

Today’s report also indicated that the agency would permanently close the sites and official accounts on the WeChat messaging application if it were discovered offering ICO and cryptocurrency trading services.

The agency is also in discussions with outside payment service providers who need to verify and stop suspicious accounts to deal with crypto transactions, the report added.

Just two days ago, various Chinese cryptocurrency media outlets were barred from WeChat, according to CoinDesk.

The owner of WeChat, Tencent, confirmed on Wednesday with source Caixin that the ban was triggered because of findings that the accounts provided cryptocurrency and ICO services. Moreover, some of them were also strictly ordered to shut their operations permanently, according to the report. With this action, it is expected to have a huge impact on the cryptocurrency transactions.

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