China to increase crackdown on Cryptocurrencies.
January 15, 2018
China looks set to increase its crackdown on crypto currencies within the country according to Bloomberg.
The government has already banned trading of the crypto currencies on official markets and has already announced a crackdown on mining Bitcoins within its borders. This has including limiting electricity supplies to well-known mining companies. Due to the amount of processing power required to mine these currencies a reduction in electricity supply would be a big hit to them. They are currently looking at locating outside China, however they will fail to find a location that has as cheap electricity as China.
Many regulators around the work are looking at the impact of these crypto currencies on their economy and the wider world. In China it is especially important as the usual central control of money by the Central bank would be undermined if people were to use a currency they have no control over, as the value is determined by the market. It is also a concern for regulators in every country that Bit coins are used for tax evasion, laundering and speculative actions.
The Bloomberg report states that the government will look to target online exchanges and mobile apps that offer people exchange services that allow them to buy or sell the currencies.