Software

Bitcoin owners in China and Hong Kong are trying to protect their crypto assets

Some crypto asset holders in China and Hong Kong are trying to find a way to protect their bitcoins and other tokens after the Chinese central bank announced on the eve of tightening measures against cryptocurrencies, including strengthening systems for monitoring transactions related to digital assets.

Source: cnbc.com

Source: cnbc.com

As a result, Bitcoin lost about 6% in price, Ethereum fell by 10%, followed by other cryptocurrencies as investors digested the news. “Since the announcement less than two hours ago, I have received more than a dozen messages – via email, phone, and encrypted messengers – from Chinese crypto investors who are trying to find a solution to access and protect their assets in foreign exchanges and wallets. Given the impossibility to do anything about highly volatile assets, I suspect that, as in the case of Roosevelt and gold, the Chinese government will “offer” them in the future to convert them into e-yuan at a fixed market price. I predicted this for some time now, watching the attempts of the Chinese government to eliminate all competitors of the upcoming digital yuan. “– said David Lesperance, a lawyer from Toronto, who specializes in transferring assets of wealthy cryptocurrency holders to other jurisdictions to save on taxes.

Yesterday, September 24, the People’s Bank of China (PBOC) published an official statement on its website, declaring illegal all cryptocurrency-related transactions, including services provided by offshore crypto platforms: trading, placing orders, issuing tokens and all derivative transactions with virtual assets. Lesperance’s lawyer noted that some of his clients expressed concerns about their own safety: “They are worried about themselves personally because they suspect that the Chinese government is aware of their previous cryptocurrency activities and they do not want to become the new Jack Ma – a target. [программы] “Common prosperity” “… Recall that Chinese tech giants are now transferring tens of billions of dollars to the “common prosperity” program launched by the President of the People’s Republic of China Xi Jinping.

In 2013, Beijing banned payment service providers from stopping accepting bitcoins. The sale of tokens was banned in 2017, and in 2019, the Chinese authorities began to harass crypto exchanges. The ban on cryptocurrency mining this year has had an impact on the entire network as a whole.

The general vector of Chinese policy towards decentralized digital assets has been obvious before, but this time it seems to be serious. The new strategy provides for the joint work of 10 government departments, including the Supreme People’s Court, the Supreme People’s Prosecutor’s Office and the Ministry of Public Security of the PRC, which demonstrates the great cohesion of the country’s top leadership. In addition, the resources of the State Office of Currency Control of the PRC are involved, and this clearly indicates that the law enforcement practice in the country will be strengthened.

The upcoming release of the NBK document was announced on September 15, and on September 3, the State Committee for Development and Reforms of the PRC published a document that completely prohibits the mining of cryptocurrencies in the country. Unlike previous statements by government agencies, where cryptocurrencies were mentioned in general terms, this document directly refers to bitcoins, Ethereum and Tether, while stablecoins are increasingly mentioned by Chinese regulators.

The head of the American investment company Bespoke Growth Partners, Mark Peikin, is confident that pressure on the cryptocurrency industry in China will have significant side effects – in particular, trading in the US markets will intensify. In his opinion, the Chinese owners of cryptoassets, who tried to remain cool amid pressure from Beijing over the past months, will be forced to radically reconsider their strategy, as opportunities to bypass the bans are becoming less and less.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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