Under Strict Supervision, How Is The Development Of China’s Cryptocurrency Industry?
By UniDAX on Altcoin Academy
As a kind of digital asset without a national boundary, Cryptocurrencies have been noticed and held by investors from all over the world. According to non-authoritative statistics, in the middle of 2018, there are more than 50 million global cryptocurrency investors. In China, the number may be more than 3 million. But the Chinese government’s attitude toward cryptocurrency is very negative.
On September 4, 2017, the People’s Bank of China jointly issued the “Announcement on Preventing the Risk of Subsidy Issuance Financing”, which completely banned ICO projects and digital currency exchanges.
The issuance of this regulation directly led to the closure of hundreds of relevant institutions in China. As soon as the news came out, the market collapsed and global bitcoin prices plummeted. A large number of cryptocurrencies fell more than 50% on the day. Investors have suffered tremendous losses and even become bankrupt. Foreign digital currency investors also hate Chinese regulators because of this incident. Even though this disaster has been going on for a year and a half, it is still uncomfortable.
While everyone thinks that the digital currency industry has completely cooled down in China, what is surprising is that the investment in Cryptocurrencies from the Chinese capital market has actually increased. More exchanges, more innovative gameplay, one by one, China has led the world’s cryptocurrency industry to move forward.
After September 2017, China’s old exchanges, Huobi, OKex, Gate and ZB did not collapse, they transferred overseas and continued to develop. Because digital currency itself is border-less, the ban of Chinese regulators only causes these platforms to transfer their registration, sites, and servers to foreign countries, while operations continue as usual. The exchange called Binance with a strong Chinese gene grew during these times and became the most popular digital currency exchange in the world, in less than a year.
It is also in this big bull market that Chinese digital currency investors have sprung up, and the new gameplay has made the Chinese Cryptocurrencies a generation faster than overseas competitors.
In November 2017, the Chinese-opened exchange DragonEx took the lead in launching a trading method for trading mining. This model gave birth to a number of hot exchanges, such as DigiFinex and FCoin, which once was the world’s largest trading exchange.
From mid-2018 to early 2019, the cryptocurrency industry was in a cold bear winter. Because the capital chain was broken, 80% of China’s small exchanges did not survive. Most Chinese cryptocurrency communities have entered a state of silence. Opportunities have always arisen in the bear market. In early 2019, a project called VDS in China introduced a resonant mode in the form of a pyramid-like private placement. Later, the higher the cost. Because of its more than 100 pages of white paper, innovative mode, and 40 times of increase, it brought a climax to the Chinese cryptocurrency field. Resonance play is a bit like Multi-level marketing (MLM), because of the new point-to-point promotion, more and more new Chinese users have joined the cryptocurrency market. At the same time as the resonance, Binance launched the IEO game, then Huobi and OKex quickly caught up. It was the IEO that launched the new bull market in 2019. As of June 2019, the number of Chinese cryptocurrency investors has exceeded 10 million, a 2X multiplier from the past six months.
When BTC reclaimed its price of 10,000 US dollars, further Chinese investors have entered the cryptocurrency market. China has a population of 1.4 billion, there are 150 million stock investors, but the number is only 10 million in cryptocurrency.
If the bull market continues, China will have more and more funds flowing into the cryptocurrency market and will play a more and more important role in global matters in this industry.
China’s regulation is also a very important turbulent factor in the global digital currency market. As stated in the American TV series “Silicon Valley”, when you invest in cryptocurrency, don’t forget to pay attention to what new regulations have been issued by government agencies in China and South Korea. Although China’s government always hold a negative attitude towards the cryptocurrency industry, it has given great support to blockchain innovation. Since the birth of digital currency, it has been inseparable from blockchain technology. We believe that one-day Chinese regulators will face this industry and begin to guide the industry into compliance. Besides, the worst case has already passed in the fall of 2017, hasn’t it?
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